Demand for intelligent, risk-managed exposure to digital assets has never been higher. While everything is still very bullish, one day, the market will reverse. Our digital asset fund maximizes upside while reducing downside risk to protect wealth for when this happens.
PR exposure continues to increase for our team as the media looks to thought leaders to explain and interpret the market. Below are some of our most recent PR appearances.
Bitcoin traditionally leads the market – Bitcoin rises, drags the rest of the market up, while ETH and other coins follow. Alt Season is when Bitcoin trades sideways or pulls back while smaller cap, more speculative coins gain in value. During this time, Bitcoin dominance drops, and ETH usually rises. In this case, because of an increase in use cases and an influx of capital into Defi, ETH is starting to decorrelate from Bitcoin, resulting in unique price action. Our Chief Investment Officer Nathan Cox recently made an excellent analogy of Defi’s impact on Ethereum.
“When Apple released the iPhone, it was impossible to calculate the number of industries it would disrupt,” he said. “While the phone itself pushed Apple to become the most valuable company in the world, the applications delivered via the app store have arguably created multiple times the value of the hardware delivering it.”
“Similarly, Ethereum provides a decentralized platform (similar to Apple’s App Store) that is already disrupting some of the most profitable industries in the world,” Cox explained. “Finance, intellectual property, and insurance could all be reimagined on the blockchain, and we’re just getting warmed up.”
Bitcoin price action has recently disappointed people, and our Chief Investment Officer Nathan Cox provided an analysis as to why to Coindesk.
“The majority of long calls and puts for the April monthly contracts are expiring worthless,” Cox said. “Needless to say, bitcoin didn’t move the way many derivative traders expected this month.”
Consolidation is expected after such a parabolic Bitcoin run past the original all-time high of $20,000. Institutional adoption of Bitcoin continues to rise and is a signal to the overall health of the market.
Investing and Yahoo Finance: Bitcoin’s Quiet Options Expiry Shows It’s Not the Only Game in Cryptotown
Nathan Cox explains and analyzes the end of the month options expiration for Bitcoin and Ethereum. In this case, Bitcoin long vol bets didn’t pay off, and Ethereum stole the show.
“The combined 54,000 call/put strikes represent an intrinsic value of only $49,000,000, meaning that the majority of long calls and puts for the April monthly contracts are expiring worthless,” said Nathan Cox, chief investment officer of Two Prime, a digital assets investment firm specialized in bitcoin and ethereum.
In recent history, as option expiration draws closer, wild swings in the price of bitcoin follow as the option sellers and buyers battle it out. But this time was different; both sides were muted.
“Bitcoin’s expiration at max pain point in April has many option traders scratching their heads. For the first time in months, long vol bets (upside calls) didn’t pay off as expected, and downside volatility remained muted,” Cox said.
Forbes: After $4.2 Billion Earthquake Sends Bitcoin Sharply Higher, Investors Brace For May Crypto Price Volatility
While most people expect the price of Bitcoin to continue to rise towards six figures, there will be months where it consolidates and trends sideways. This is mostly what transpired in April as investors expect a much more action-packed May.
“Needless to say, bitcoin didn’t move the way many derivative traders expected this month,” Nate Cox, the chief investment officer of digital assets investment company Two Prime, said via email.