Two Prime CEO: Bitcoin Has Significant Room for Rebound, Short Covering Fuels Uptrend

Alexander Blume, founder and CEO of Two Prime, stated that Bitcoin still has room for rebound in the near term, as institutional investors who have sold volatility face position pressure. The upward price movement will force short sellers to cover their positions, thereby boosting the uptrend. He pointed out that the current market structure is healthy, with funding rates not showing signs of overheating. The rebound is not driven by speculation, as the continuous inflow of spot ETFs and corporate buying provides substantial support. Although implied volatility has risen from 23%-24% to over 40%, it remains low by historical standards. If sellers of call options are forced to close their positions, it could accelerate the upward movement. Blume believes that if macro conditions stabilize, BTC has already formed a bottom around $60,000, with the greatest risk coming from a complete collapse of risk assets. The prevailing pessimism in the market means that even moderate positive news could have an outsized impact. Regarding mining companies, MARA recently chose to collateralize its BTC holdings to obtain a $600 million loan from Coinbase and Two Prime, rather than selling directly, in order to retain upside potential. Mining companies are diversifying their AI transformation strategies, with Cipher Mining and TeraWulf actively shifting towards AI infrastructure, while CleanSpark and MARA explore AI and power sectors while maintaining their original businesses. Blume expects the Trump administration to push for interest rate cuts, and adjustments to the PCE index may lower inflation readings, potentially improving interest rate outlook.