QCP: If the spot market continues to remain sluggish, it may suppress institutional BTC demand

Odaily Planet Daily News QCP Capital posted on its official channel that Bitcoin finally fell below $90,000 in a month and is currently hovering below that level, triggering more than $200 million in liquidations in the past few hours. Following Trump's decision to impose tariffs on Canada and Mexico and restrict Chinese investment, market sentiment continues to be under pressure. As Bitcoin prices fall, short-term option hedging activities increase, and the 1-month implied volatility has now rebounded to 50, while the option skewness interestingly remains basically unchanged. From a macro perspective, despite the emergence of data that was previously believed to have led to broader market weakness, the stock, fixed income and gold markets have basically digested these impacts, while Bitcoin has remained sideways. The increase in Bitcoin's market capitalization share and the decline in altcoin prices indicate that altcoin bulls may be fully invested, and any new US dollar inflows will only flow into Bitcoin. We remain cautious. Recent demand for Bitcoin has been driven mainly by institutions such as MicroStrategy and Metaplanet, which have raised funds by issuing equity-linked notes. Considering that cryptocurrency-related issuance accounted for approximately 19% of total issuance over the past 14 months, the market for such financing may be close to saturation, which could curb institutional demand if the spot market remains sluggish.