Two Prime CEO: Bitcoin’s Rally Has Room to Grow, with Short Covering Providing Additional Momentum

ChainCatcher report, according to CoinDesk, Alexander Blume, founder and CEO of cryptocurrency asset management firm Two Prime, stated that Bitcoin’s recent rebound still has room to grow, primarily due to institutional investors who sold volatility facing margin pressure; if prices continue rising, forced long covering by short sellers could amplify the upward momentum. He noted that the current market structure remains healthy, with funding rates showing no signs of overheating, and the rebound is not driven by speculation but supported by sustained inflows into spot ETFs and corporate buying. Although implied volatility has risen from 23%-24% to above 40, it remains low by historical standards, and forced liquidations by call option sellers could accelerate the rally. Blume believes that, absent macroeconomic instability, BTC has likely found support near $60,000; the greatest risk lies in a broad-based collapse of risk assets, while prevailing market pessimism means even modest positive catalysts could generate outsized effects. On the mining front, MARA recently secured a $600 million loan from Coinbase and Two Prime by pledging its BTC holdings rather than selling them outright, preserving upside potential. Mining companies’ AI transition strategies are diverging: Cipher Mining and TeraWulf are more aggressively shifting toward AI infrastructure, while CleanSpark and MARA are exploring AI and power-related opportunities alongside their core operations. Blume expects the Trump administration to push for interest rate cuts, and adjustments to the PCE index may lower inflation readings, potentially improving the interest rate outlook.