BTC Trade Recommendation 1/26/20

For the past week, we have been monitoring the outbreak of the corona virus in China, particularly the news that it has spread beyond China to the U.S., Japan, South Korea, Taiwan, France, Thailand and Australia. We encourage all of our clients and colleagues to remain vigilant and hope that they and their families take any necessary precautions to stay safe.

From a macro standpoint, we’ve seen a significant uptick in volatility through all other asset classes due to this situation. Our fear is this is much worse than the Chinese authorities are making in their public statements. We think there could be a real flight to safety (risk off) trade, which we believe would be constructive for BTC.

Trade recommendations:

1. We believe BTC volatility is lagging relative to other asset classes therefore it makes sense to get long BTC options. (Reach out to Tim Kelly for specific strategies.)

2. BTC will outperform in a flight to safety (risk off) trade. We recommend a spread trade getting long BTC vs popular Asian token such as TRX, NEO and ONT or a basket of tokens.

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