The analytics firm QCP Capital has identified a growing bullish trend in the options market and potential further growth in the crypto space.
Trends in the Options Market
QCP Capital noted that options market data has been trending upward, indicating strong demand for high-delta Bitcoin call options from February to April. This increase in demand is likely due to short-term optimism stemming from recent comments by former US President Donald Trump and speculation about potential strategic Bitcoin reserves. Additionally, the 25 Delta implied volatility, a key options market metric, has shifted higher across all maturities, reinforcing the view that the market is preparing for the next phase of the bull run.
Macroeconomic Factors
QCP Capital also noted macroeconomic developments following Trump’s announcement of new tariffs. Trump announced plans to impose tariffs of 25% or higher on pharmaceuticals and semiconductor chips, but did not specify a timeline. However, companies could avoid these tariffs by moving operations to the US.
Political Influences and ETFs
Since Trump’s return to the political scene, altcoins have been gaining more traction, with the US Securities and Exchange Commission (SEC) filing a number of altcoin-related ETF applications. Among these, the application for an XRP ETF stands out, especially after Brazilian regulators approved the world’s first spot XRP ETF. While it remains unclear whether Trump’s policies will accelerate crypto ETF approvals in the U.S., QCP Capital suggests that a pro-crypto stance from his administration could pave the way for more developments in 2025.
Considering these factors, QCP Capital claims that the bullish momentum in the crypto market will continue and the next phase of the bull cycle will potentially emerge in the coming months.
