QCP: Maintain a structurally bullish view on Bitcoin, but be cautious when chasing the rally

ChainCatcher news, QCP Capital stated in its latest market briefing, "Bitcoin has recently continued to rise strongly, with prices breaking through $122,000, setting a new high. Technical breakthroughs and significant inflows of institutional funds have become the main driving forces. The Crypto Fear and Greed Index has risen from 40 to 70 in three weeks, indicating a rapid shift in market sentiment from 'fear' to 'greed'.

Data shows that last week, net inflows into spot Bitcoin ETFs exceeded $2 billion, demonstrating strong institutional participation. Meanwhile, leveraged long positions in perpetual contracts continue to increase, with funding rates approaching 30%, and the total open interest has surpassed $43 billion, marking one of the highest levels this year.

The options market is performing relatively rationally. Despite the continuous rise in spot prices, the increase in implied volatility has been moderate, reflecting a more mature market. The January risk reversal trend is stable, and demand for call options in September and December has risen, indicating that the market tends to hedge against short-term volatility while maintaining a bullish outlook for the medium to long term.

Although Bitcoin's performance is strong, caution is advised when chasing prices in the context of high funding rates and existing liquidation risks; a pullback strategy may be a better approach."