Singapore-based trading firm Presto Labs is advising clients to bet on BTC strength and short BCH to profit from the ongoing Mt.Gox repayments. Last week, as the defunct exchange Mt.Gox began paying back creditors affected by the 2014 hack, hundreds of millions of dollars worth of Bitcoin will flow into the market in the coming months, with more than $73 million worth of BCH and about $9 billion worth of BTC set to be distributed to traders.
Presto analyst Peter Chung said that analysis shows that BCH's selling pressure will be four times that of BTC, that is, 24% of BCH's daily trading volume and 6% of BTC's daily trading volume. Unless there is funding rate risk, long BTC perpetual contracts combined with short BCH perpetual contracts are the most effective market-neutral way to express this view. (Coindesk) #BTC☀