Altcoin ETF Approval and Options Market Data Signal Second Phase of Crypto Bull Market, Says QCP

According to QCP Capital, the second phase of the crypto bull market may be fueled by altcoin ETF approvals and strong demand in the call options market.The firm highlighted the intensifying AI competition between China and the U.S., with DeepSeek—a rising AI player—seeking institutional capital from Alibaba and state-owned funds such as the China Investment Corporation and the National Social Security Fund. This move could challenge U.S. AI dominance, potentially reshaping industry valuations and fueling market volatility.Altcoin ETFs Gain Momentum as Trump Administration Signals Support for CryptoSince Donald Trump’s return to office, institutional interest in altcoins has surged, leading to several altcoin-related ETF applications submitted to the U.S. Securities and Exchange Commission (SEC).Notably, Brazilian regulators have already approved the world’s first spot XRP ETF, marking a major milestone in the expansion of altcoin investment products. If similar approvals follow in the U.S. market, it could drive significant capital inflows into altcoins, strengthening the ongoing bull cycle.Bitcoin Call Options Indicate Bullish Market SentimentQCP noted strong demand for high-delta Bitcoin call options expiring between February and April, likely driven by:Bullish sentiment post-Trump’s pro-crypto stanceSpeculation over the U.S. establishing a strategic Bitcoin reserveA shift in implied volatility supporting call options across all maturitiesThe 25-delta implied volatility has now turned to favor call options, signaling that the market is positioning itself for the next leg of the bull market rally.Macro Trends Align in Favor of Risk AssetsBeyond the crypto market, macro indicators suggest an increasingly supportive environment for risk assets, including:Easing inflation concernsThe S&P 500 reaching new all-time highsA retreating U.S. dollar index (DXY) down to the 107 levelWith crypto-friendly regulatory signals, altcoin ETF momentum, and bullish derivatives market activity, QCP suggests the crypto market could be entering its next expansion phase—potentially pushing Bitcoin and altcoins to new highs in 2025.