A Guide for Hedging Against Bitcoin Price Declines

A Hedge for All Storms

Brian Koralewski is the founder of Austere Capital Advisory LLC, a digital asset derivative consulting firm headquartered in New York City. He is a former Economics Professor as well as co-founder of Digital Asset Research, the first institutional research firm within the crypto asset space.

He started Austere Capital while trading Bitcoin options back in late 2017.

Nearly three years later, Austere Capital Advisory is the standalone firm within the digital asset space that outlines and executes customized portfolio hedging solutions for the high net worth and institutional digital asset investor.

(No current crypto asset managers offer expertise in bespoke crypto hedging strategies.)

Austere Capital is also known for its unparalleled, rigorous research of crypto assets, including debunking and exposing the logical fallacies of the highly touted MV=PQ valuation methodology, dissecting Stellar Lumens’ Token Economic Model, and analyzing ChainLink’s Oracle network.

To learn more about working with Austere Capital, fill out this contact form here. (Note that we only work with investors or firms that hold a BTC or ETH portfolio value of at least $1MM USD.)

Who This Guide Is For

Welcome!

This guide is specifically geared towards Bitcoin investors (individual or institutional) who namely:

• Do not plan on selling any of their BTC in the next year.

• Are open to buying additional BTC “at a discount.”

• Desire to hedge (i.e. offset) their losses when BTC declines.

BTC appears to have pulled back from breaching its $20,000 high from nearly 3 years ago. If the down trend continues to $10k, how can investors take advantage?

For a portfolio consisting of 100 BTC, a price drop from $17k to $10k, assuming one does nothing, equates to a loss of $700,000 (100 BTC * $17k — 100 BTC * $10k).

If say BTC rises to $25,000, breaking the $20k barrier, how can we also effectively hedge our gains against any subsequent price de1cline in this similar scenario?

Read the full document here.

Economist, Ocean Lifeguard, Founder of Austere Capital Advisory (https://austere.capital/)

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