Are Smart Traders Hedging Bitcoin with Altcoin Shorts?

From a trading perspective, the best approach is to follow...

Author

Markus Thielen
January 14, 2025

👇1-12) Bitcoin continues to trade within a narrowing wedge, with several critical catalysts on the horizon. Expectations for a higher CPI number have risen, creating a scenario where a softer-than-expected inflation reading could trigger a Bitcoin rally. This aligns with our January outlook, which anticipated a moderately positive start to the month, followed by an inflation scare leading up to the CPI release.

👇2-12) The risk-reward ratio at this point is not particularly favorable, with downside risks persisting. While Bitcoin has shown resilience, much of the altcoin market is experiencing significant declines.

Market Updates

Become a paying subscriber of Market Updates to get access to this post and other subscriber-only content.

Already a paying subscriber? Sign In.

Most comprehensive, unbiased digital asset research for traders and institutions:

  • • Receive 2-4 concise, informative Market Updates reports per week.
  • • We cover everything that impacts the price of Bitcoin and other major cryptos, from on-chain data to macro and market structure (funding rates, money flows, etc.). Our insights are trusted by some of the largest hedge funds and traders in the industry.
  • • You'll gain full access to our in-depth 'Market Update' analysis, informed by our experience at leading investment banks like Goldman Sachs, Morgan Stanley, and JP Morgan, as well as managing hedge fund capital at Millennium.
  • • We rigorously backtest our insights and are unafraid to call bullish or bearish market conditions. Our research is unique and grounded in solid financial analysis, offering perspectives you won't find anywhere else.
  • • --------------
  • • Our clients include hedge funds, traders, liquidity providers, exchanges, family offices, proprietary traders, institutions, high-net-worth individuals (HNWIs), CEOs of major listed Bitcoin mining companies, executives from crypto service providers, TradeFi portfolio managers, etc.