QCP Capital: The crypto market still maintains an extremely high leverage level, especially in the altcoin market

Singaporean cryptocurrency investment firm QCP Capital stated: "Given the strong surge of Bitcoin since the US election, we believe that a target price of 100,000 to 120,000 USD may not be too far off.

In preparation for the next wave of increases, the following trends and risk factors are worth noting: 1. As many big players have prepared for this rise and sold bullish options, implied volatility has decreased during the rise. Our team observed that with each new high reached, the market is selling bullish options and buying bearish ones to hedge against downside risks. 2. The market still maintains extremely high leverage levels, especially in altcoin markets. High-leverage buying has pushed perpetual contract funding rates up to between 50% and 100%, particularly in altcoin markets where de-leveraging risks could be quite significant.

We believe that Bitcoin's fundamentals are strong reflecting a systemic shift made by the market for Trump's return to White House. His proposal to establish strategic Bitcoin reserves as well as shifting from gold towards Bitcoin provides a powerful supporting narrative for Bitcoin prices."