QCP: Improved market risk sentiment drives Bitcoin to break through $90,000, may continue to oscillate in a range in the short term.

On Wednesday, Bitcoin saw strong buying interest, with its price breaking through the $90,000 mark, reaching a new high in nearly a week. QCP Capital's report pointed out that this surge was not driven by the fundamentals of Crypto Assets but rather due to an improvement in market risk sentiment. Bitcoin rose from an intraday low of $86,400 all the way up, increasing by 5.3% in the past 24 hours, nearing $91,500.

Short sellers were caught off guard; Coinglass data shows that the amount of short positions closed in the past 24 hours reached $241 million, which is more than three times that of long positions closed. On Wednesday, the S&P 500 index rose for the fourth consecutive trading day, in sync with Bitcoin's re-test of the $90,000 level. Market expectations for a rate cut by the Federal Reserve in December have heated up, with CME FedWatch showing a 85% probability of a 25 basis point cut, while Myriad users predict it to be 83%. Although some officials still oppose the rate cut, the overall macro atmosphere is favorable for risk assets.

In this period, the options market also saw an inflow of $2 billion in institutional funds, with a prominent proportion of the bullish options vulture strategy positions, indicating that investors expect Bitcoin to continue fluctuating within a range. The vulture strategy is constructed by buying bullish options with different strike prices but the same expiration date, which has controllable risk and limited returns. If the price remains between the two middle strike prices, the maximum profit can be obtained.

QCP analysts point out that Bitcoin may continue to fluctuate within a range in the short term, with ETF-related fluctuations possibly limiting the price from breaking through $95,000; while the range of $80,000 to $82,000 remains a key support level. Macroeconomic catalysts and overall market risk appetite are still important driving factors for Bitcoin's price movement. (Decrypt)