Protect Bitcoin Exposure with Ether Shorts: Research Firm

A research firm recommends hedging bullish Bitcoin positions by shorting Ethereum (ETH) due to weak demand for ETH and limited capital among major buyers. Market flows indicate a preference for Bitcoin over Ether, with increasing demand for put options on ETH. The firm, led by Markus Thielen, highlights the deterioration in the ETH digital asset treasury outlook and reduced retail demand since September. This slowdown in new purchasing capacity from significant buyers like Bitmine Immersion Technologies points toward limited upside potential for Ethereum. Furthermore, options data shows a bias against Ether and increasing concerns about its price stability. In contrast, Bitcoin’s options open interest has reached record highs, evidencing strong demand for upside exposure. Given these conditions, adopting a long Bitcoin and short Ether strategy presents an appealing hedge against potential market withdrawals, especially if Bitcoin fluctuates beyond its current trading range.

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