Liquidity rushing back into risk assets, says QCP Capital

nexninja
2 Min Read

QCP Capital analysts count on elevated liquidity in high-risk belongings.

In response to a report dated Feb. 16, consultants will stay optimistic as liquidity flows again into threat belongings. On the similar time, inflation, steady at greater than 3%, stays a draw back threat and also will imply elevated market volatility.

“For traders who’re nonetheless bullish however are beginning to be draw back defensive at these ranges, we offer an Upside Participation Construction (UPS) which supplies 100% safety on the principal funding quantity however makes use of the yield for a leveraged upside wager.”

QCP Capital analysts

Analysts notice that the latest improve in CME margin necessities has turn out to be a necessary set off for volatility. On this case, leveraged gamers discovered themselves brief, and the brand new requirement led to widespread brief overlaying through the comparatively illiquid Lunar New 12 months weekend. This led to a rise in each spot and ahead costs.

“The ahead unfold commerce in BTC is now again to round 11-12% ann.”

QCP Capital report

Earlier, QCP Capital stated that the energetic formation of positions on name choices with strikes from $60,000 to $80,000 and the frenzy demand for ETFs may push Bitcoin (BTC) to ATH as early as March. QCP Capital defined the dynamics of the choices market and the breakout above $50,000 by elevated demand for spot ETFs.


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