Growing Bullish Trend in Cryptocurrency Options Market

Cryptocurrency analytics firm QCP Capital has highlighted a growing bullish trend in the options market and a potential further uptrend in the crypto space.

Demand for Bitcoin Options

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.

Changes in Implied Volatility

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, according to the analyst firm.

Macroeconomic Developments

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.

Trump also addressed U.S. auto exports, citing unfair trade practices and confirming auto tariffs will go into effect on April 2. These policies could impact global markets and potentially ripple through cryptocurrencies and other risk assets, according to the analytics firm.

Impact on Altcoins and ETFs

Since Trump’s return to the political scene, altcoins have gained more traction, with the US Securities and Exchange Commission (SEC) filing several 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 hasten 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.

Conclusion

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.

This is not investment advice.