Bitcoin rally has more room as volatility shorts unwind, Two Prime CEO says
Bitcoin's recent rally may have further upside as short positions are unwound, according to Two Prime CEO Alexander Blume. Increased institutional demand and spot ETF inflows are cited as primary drivers for the current price action.
Why it matters
Understanding market positioning and institutional flows is essential for investors navigating the volatile cryptocurrency market.
Investors have repeatedly sold bitcoin calls, suppressing implied volatility and leaving themselves exposed when prices rise sharply, Blume told CoinDesk in an interview. Further gains could force those traders to hedge or close positions, adding fuel to the rally.
“There are still a meaningful number of people short,” Blume said, arguing that selling bitcoin volatility at historically low levels is a particularly poor trade.
Bitcoin and the wider crypto market have rebounded in recent weeks, with BTC briefly topping $82,000 on Thursday, its highest level since May. The world’s largest cryptocurrency was trading around $78,500 at publication time.
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