Bitcoin News Today: Short Ether (ETH) to Hedge Your BTC Longs, Firm Says

A research firm recommends that investors hedge their bullish Bitcoin (BTC) positions by shorting Ether (ETH) due to ETH's declining demand and limited capital availability for major buyers. The firm notes strong market flows favoring Bitcoin over Ethereum, indicated by rising demand for put options on ETH. According to Markus Thielen, the firm's founder, a significant factor in ETH's outlook stems from the reduced purchasing activity of Bitmine Immersion Technologies, a key ETH buyer, leading to concerns about Ethereum's price potential. Thielen also highlights an anti-ether sentiment in Deribit-listed options, with a shift toward put options signifying downside worries among traders. Opposingly, Bitcoin's open interest in options has reached a $50 billion record, underpinned by demand for bullish exposures. With Google search data indicating a dwindling number of new ETH buyers, the firm suggests that if Bitcoin breaks its current trading pattern, Ether may be particularly vulnerable to downside movements. Thus, maintaining long BTC and short ETH positions is recommended under current market conditions. As of the latest update, BTC is priced at approximately $108,820, while ETH hovers around $3,815, reflecting respective dips in value in the past 24 hours.

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