Expect bullish Bitcoin sentiment to return despite a volatile weekend where the coin dipped to lows of $64,500 before rebounding $67,000.
What Happened: QCP Capital reported that the observed increase in buying activity, particularly for Bitcoin BTC/USD put options, suggests investors are comfortable acquiring BTC at these levels.
The report also noted the surge in buying for long-dated Bitcoin calls with strike prices between $100,000 and $150,000.
These long-term call options expiring in September and December 2024 signal a return of "greed" among some investors, who are betting on significant price appreciation for Bitcoin in the coming months.
Ethereum Lags Behind In Rally
QCP Capital noted negative perpetual funding rates and a downside skew in risk reversals for Ethereum ETH/USD, suggesting growing nervousness among investors despite the ongoing rally in other altcoins.
QCP also proposes a "Fear + Greed" trade idea using a Bitcoin Unconditional Fixed Coupon Convertible (UFCC).
This strategy offers a fixed weekly coupon regardless of Bitcoin's price movement while providing a buffer zone to protect investors from significant downside risk.
The report outlined a hypothetical example where a $1 million investment in a UFCC could generate a consistent weekly yield and offer some protection against price drops.
Price Action: At the time of writing, Bitcoin was trading at $67,390, down 0.9% over the past 24 hours, as reported by Benzinga Pro.
Read Next: 'I Am Going With Warren On This One:' Bitcoin Is 'Still Thin Air,' Says Personal Finance Guru Dave Ramsey Despite Trillion-Dollar Market Cap
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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