TechFlow reports that Singapore-based trading firm Presto Labs is advising clients to take advantage of the Mt. Gox repayments by implementing a market-neutral strategy—going long on Bitcoin (BTC) while shorting Bitcoin Cash (BCH). Last week, creditors affected by the 2014 hack began receiving hundreds of millions of dollars worth of BTC repayments. Over the coming months, more than $730 million in BCH and $9 billion in BTC will be distributed to the market.
Peter Chung, analyst at Presto, said the distribution of billions of dollars in BTC and BCH from July 1 to October 31, 2024, could shift the supply and demand dynamics for both assets, creating hedging opportunities. Analysis suggests that selling pressure for BCH will be four times higher than that for BTC. Data shows that BTC traded over $27 billion in the past 24 hours, compared to $180 million for BCH.
Presto believes early Bitcoin holders are more likely to hold their assets, whereas the weaker investor base for BCH may lead to full liquidation in the short term.
