According to Cointelegraph: Dan Rosen, associate director of derivatives at Luxor, a US-based Bitcoin mining pool, research hub, and service provider, shared his views on Bitcoin's upcoming halving, volatility, and miners' ability to hedge their operations via hash rate derivatives during an episode of Cointelegraph's Market Talks. Rosen compared Bitcoin's volatility to that of tech stocks in the early 90s, such as Apple and Google, and stated that although Bitcoin's volatility has been dropping over time, it will likely remain in the double-digits for years to come.
Luxor's hash rate derivatives offer miners the ability to hedge their exposure to changes in hashprice, providing them with options to predict and lock in future revenue during events of unexpected volatility. Rosen also discussed the impact of macroeconomic factors on Bitcoin's price and miners, noting that the market is starting to price in longer-term inflation in the 2.5% to 3% range, while the US dollar continues to be a flight-to-safety asset.
Rosen believes that although Bitcoin's price may not reach six figures leading into the halving or directly after it, new lows could be seen over the next six months due to macro headwinds, followed by a stronger rally afterward. The full episode of Market Talks can be found on the Cointelegraph Markets & Research YouTube channel.
