Digital asset derivatives firm Two Prime has announced a major shift in its strategy, focusing entirely on Bitcoin moving away from Ethereum. This decision stems from deep analysis of market data and indicates a potential change in institutional preferences within the crypto industry. 💰 📈
Two Prime cited ETH’s volatility as a key factor behind this decision. The firm, known for its lending and trading operations, previously heavily invested in both ETH and BTC but now prefers Bitcoin due to its greater stability and consistent price action.
Their recent analysis indicates that the Ethereum market has transformed. Its correlation with Bitcoin has decreased, and the risk associated with its volatility has increased significantly. Two Prime believes this shift aligns with their algorithmic trading model which prioritizes data-driven decisions rather than subjective narrative. 🤖,
The change will impact the lending market as Two Prime had been a significant player. The firm’s investment in BTC signifies a potential shift in how institutions view Bitcoin as an asset, potentially driving changes in overall crypto strategies.