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

A research firm suggests that investors can hedge their bullish Bitcoin positions by shorting Ether (ETH), citing weak demand for the latter. Analyst Markus Thielen reported that market flows indicate a clear preference for Bitcoin over Ether, with increasing demand for put options on ETH. This strategy comes as retail demand has declined significantly, particularly impacting major ETH buyers like Bitmine Immersion Technologies, which has seen a slowdown in purchasing capacity due to limited capital options. Thielen noted the rising trend of traders seeking downside protection on Ether further supports this hedge, contrasting sharply with Bitcoin's record-high open interest in options. Overall, the firm believes that a position strategy involving long Bitcoin and short Ether is attractive, especially if Bitcoin continues to trade above $100,000. As of the latest data, Ether is trading at approximately $3,815, while Bitcoin sits at around $108,820, showcasing the wider market dynamics at play.

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