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

A research firm has recommended hedging bullish Bitcoin positions by shorting Ether, citing weak demand for ETH and limited capital among major buyers. Recent market trends indicate a preference for Bitcoin over Ether, highlighted by an increase in put options for Ether. Markus Thielen, founder of the firm, noted that the anti-Ether sentiment in options trading reflects investors' growing concerns about ETH's downside. Significant factors contributing to this outlook include the limited capacity of major Ether buyer Bitmine to purchase more coins, as retail demand has waned. Additionally, data shows a reduction in new Ether buyers, indicating potential price weakness. In contrast, Bitcoin's options open interest has reached unprecedented highs, mainly driven by demand for upside exposure. Thus, shorting Ether while maintaining long Bitcoin positions appears to be an effective strategy, especially as Bitcoin approaches significant resistance levels above $100,000.

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