A prominent research firm has issued guidance suggesting investors hedge bitcoin positions through strategic ethereum shorting, challenging widespread year-end rally expectations for ETH.
Market Dynamics Shift
10x Research founder Markus Thielen outlined compelling reasons for this contrarian approach. The firm's altcoin model continues favoring short ETH versus long BTC positioning, citing fundamental shifts in market structure.
Institutional Demand Concerns
Bitmine Immersion Technologies, previously a significant ethereum accumulator, has dramatically reduced new share issuance since September. This decline reflects weakening retail demand and constrained capital-raising capabilities, potentially limiting future ETH purchases.
Options Market Sentiment
Deribit-listed options reveal growing anti-ethereum sentiment among sophisticated traders. Put option demand has increased substantially, contrasting sharply with bitcoin's record-breaking $50 billion options open interest driven primarily by call purchases.
Search Trends Indicate Waning Interest
Google search analytics suggest a shrinking pool of potential ethereum buyers, creating vulnerability to downside pressure. This data point reinforces concerns about diminishing retail participation.
Strategic Implications
The research suggests ethereum could experience disproportionate weakness if bitcoin breaks above $100,000 or below its current trading range. This positioning strategy aims to provide portfolio protection regardless of bitcoin's directional movement.
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Current market data shows ethereum trading at $3,815 (down 3.2%) while bitcoin holds $108,820 (down 1.8%).
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