QCP Capital indicates a surge of liquidity flowing back into high-risk investments

QCP Capital analysts are anticipating a surge in liquidity for high-risk assets, according to a report published on February 16th. Experts remain optimistic as liquidity returns to risk assets, although they acknowledge that inflation, which has remained stable at over 3%, poses a downside risk and will contribute to increased market volatility.

The analysts highlight that the recent rise in CME margin requirements has been a significant trigger for volatility. This change has placed leveraged players in a short position, and the new requirement has resulted in widespread short covering during the relatively illiquid Lunar New Year weekend. As a result, both spot and forward prices have increased.

Previously, QCP Capital stated that the active formation of positions on call options with strikes ranging from $60,000 to $80,000, as well as the high demand for ETFs, could potentially push Bitcoin (BTC) to its all-time high (ATH) as early as March. QCP Capital explained that the dynamics of the options market and the breakout above $50,000 were driven by increased demand for spot ETFs.

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