When will Bitcoin (BTC) price return to $74K high: QCP Capital

QCP Capital predicts a major rally in the next few months that could see Bitcoin reach its previous high of $74,000.

This follows a rise in BTC prices on May 15, driven by ETF earnings and April's Consumer Price Index (CPI), indicating a slight drop in inflation from last month.

Institutional adoption and bullish momentum

According to insights provided by QCP Capital, the US CPI figures led to a split across risk assets, prompting BTC to bounce back above the $66,000 mark.

“We expect bullish momentum that could take us back to the highs of $74,000,” QCP Capital said.

Investors increased their buying activity as they received 100-120k BTC calls for December 2024. Also, major asset managers such as Millennium and Schoenfeld allocated 3% and 2% of their assets, respectively, showing broad institutional acceptance of the main cryptocurrency. Management (AUM) to identify Bitcoin ETFs.

Analysts at QCP Capital also emphasized favorable market conditions, including sovereign and institutional adoption, as easing inflation and anticipation of the upcoming US election contributed to the bull market's revival.

QCP Capital advises traders to adopt strategies such as Bullish ERKO Seagulls. Designed to take advantage of price movements by minimizing price movements, they offer investors the opportunity to participate in bitcoin's potential bull run with minimal upfront costs.

For example, the bullish ERKO Seagull offers a cost-neutral approach with a maximum payout of $18,000 per BTC if the June price hovers below $88,000. Similarly, August Segal offers a similar risk-reward profile, potentially paying $30,000 per BTC if the spot price approaches $100,000 by the expiration date.

As inflation eases, Bitcoin will rise

A report released on May 15 showed that the consumer price index, which is used as a general measure of the price of goods and services in the US, showed a slight decrease in inflation compared to the previous month.

On Wednesday, Bitcoin experienced a major rally following the release of the April CPI, with its price rising more than 7% to $66,567.91, its best performance since March 25. April 13.

This surge on Wednesday propelled BTC to a weekly gain of 7%, the most notable increase since the last week of March, reversing a month-and-a-half downward trend. According to data from CoinGecko, as of this writing, Bitcoin is trading at around $66,0007, representing a 6% increase over the past 24 hours.