Two Prime CEO sees room for BTC rebound to extend

Bitcoin’s rebound is likely to continue as institutional investors that had sold volatility in the options market face short covering, Two Prime CEO Alexander Blume said, according to CoinDesk. Blume said investors had continued selling call options in trades that suppressed realized volatility, but were exposed to losses as prices rose. He said a wave of hedging and position unwinds is likely to add upside momentum. Blume also said perpetual futures funding rates have not surged to excessively speculative levels, suggesting the current rally is being driven by healthy demand rather than excessive leverage. Unless macroeconomic headwinds emerge, he said, the $60,000 level is likely to serve as strong downside support for Bitcoin. Rising Treasury yields, higher oil prices, inflation concerns and a broad stock-market sell-off were cited as key downside risks.