Crypto
Home›Crypto›Market Structure›Bitcoin could extend gains as volatility shorts unwind…
Bitcoin could extend gains as volatility shorts unwind, Two Prime CEO says
CoinDesk reports spot bitcoin ETFs pulled in $731 million on Thursday, its biggest one day inflow since January, but wider risk-asset weakness remains a key threat.
Bitcoin’s rebound may have further to run as investors who sold bitcoin call options are forced to cover their positions, Two Prime founder and CEO Alexander Blume said in an interview, according to CoinDesk.
Blume argued that selling bitcoin volatility at historically low implied-volatility levels has left traders exposed if prices rise sharply, creating potential fuel for additional gains as those shorts hedge or close.
He also pointed to demand support from spot bitcoin ETF inflows and renewed buying by bitcoin treasury companies, adding that perpetual-futures funding rates have not reached levels that would typically signal excessive leverage or a local top.
Still, Blume said a broader collapse in risk assets would be the biggest threat to the idea that bitcoin has established a floor near $60,000, even after BTC briefly topped $82,000 on Thursday.
At publication time, CoinDesk reported BTC was trading around $78,500, after the rally gained momentum alongside easing bond yields, expanded Treasury debt buybacks, and expectations that the Federal Reserve could hold rates steady in September.
Latest closeBitcoin $78,261.43 ▼1.1%