Presto Labs Advises Clients to Go Long BTC While Shorting BCH to Benefit from Mt. Gox Repayment
Singapore-based trading firm Presto Labs is advising clients to bet on BTC strength in market-neutral trades and short BCH to profit from the ongoing Mt. Gox repayment. Our analysis suggests that the selling pressure on BCH will be four times that of BTC, i.e. 24% of the daily trading value of BCH vs. 6% of the daily trading value of BTC. Excluding funding rate risk, going long the BTC perpetual contract and pairing it with a short BCH perpetual contract is the most effective market neutral way to make this point, added Peter Chung, Market Analyst Leader at Presto. Presto further hypothesizes that investors who held Bitcoin in its early stages were likely wealthy Bitcoin holders with diamond hands, and therefore more likely to hold some of the compensation rather than sell the asset outright. However, Presto said that the investor base for BCH is much weaker and may sell all of it in the short term.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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