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BTC has broken above the 50k level again after more than 2 years. This has been on the back of impressive inflows from the BTC spot ETFs of about $500-650m a day, which works out to 10-13k BTC bought daily.

We expect these inflows to continue as global liquidity rotates into the spot ETFs. With the likes of Fidelity announcing a 1-3% cryptocurrency allocation in their All-in-One conservative ETF, the crypto asset class is now front and center for mainstream investors.

In addition to these spot inflows, there has been massive BTC call option buying. This week alone, we saw close to $10 mil USD spent on premiums for 60-80k strikes expiring from Apr to Dec.

On the back of these flows, BTC can easily break all-time highs by the end of Mar.

Trade ideas for the week:

  1. Accumulators - Clients who deployed Accumulators the week before were able to buy BTC spot below 40k on the last observation, which is close to 25% discount to current spot price!
    We continue to like this structure as it allows one to consistently pick up BTC at a discount in this strong uptrend. Right now, an end-June accumulator allows one to purchase BTC under 45k every week as long as spot price is under 60k. And if spot price is above 60k, the whole structure can be rolled higher at zero cost (indicative, 52k spot ref).
  2. Digitals - For those who are extremely bullish, Digital options offer exponential payouts. For example, an end-June 100k Digi pays out 14.3X or +1,330% return. You get this payout if BTC spot price is above 100k at the end of June (indicative, 52k spot ref).
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War Room 1 - May 27th, 2024
Disclosure: The authors of this content and members of Nansen may be participating or invested in some of the protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. Nansen does not recommend any particular course of action in relation to any token or protocol. The content herein is meant purely for educational and informational purposes only and should not be relied upon as financial, investment, legal, tax or any other professional or other advice. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Readers are strongly urged to exercise caution and have regard to their own personal needs and circumstances before making any decision to buy or sell any token or participate in any protocol. Observations and views expressed herein may be changed by Nansen at any time without notice. Nansen accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content.