Markus Thielen, founder of cryptocurrency analysis firm 10X Research, suggests that investors can adopt a strategy of going long on Bitcoin and shorting SOL before the announcement of the U.S. election results.
(Previous context:
The first votes of the U.S. election are in! In the small town’s midnight voting, Trump and Kamala Harris are tied 3-3.
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(Background supplement:
Preparing for the U.S. Election: How have the S&P 500 and Bitcoin historically performed after the past ten elections?
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Contents
10X Research: Go Long on BTC, Short SOL
SOL Network Transaction Fees Drop to $2.5 Million
SOL Surges More Than Bitcoin
With the final results of the U.S. election about to be unveiled, the market generally believes that if former U.S. President and Republican candidate Trump wins, it could spark a short-term surge in the cryptocurrency market due to his potential leniency in cryptocurrency regulation. However, if Democratic candidate Kamala Harris wins, cryptocurrencies might face short-term bearish pressure.
10X Research: Go Long on BTC, Short SOL
Against this backdrop, Markus Thielen, founder of cryptocurrency analysis firm 10X Research, suggested in a report submitted to clients this Monday (4th) that investors could use a hedging strategy of going long on Bitcoin and shorting SOL before the election results are announced. Markus explained:
SOL Network Transaction Fees Drop to $2.5 Million
Additionally, Markus noted that the recent network transaction fees on the Solana chain have decreased from a peak of $5 million per day on October 24th to $2.5 million. This might also be one of the factors causing the SOL price to fall.
Solana price and daily network transaction volume. Image source: 10x Research
However, it is worth mentioning that according to previous data, if Bitcoin experiences a surge that drives the collective rise of altcoins, cryptocurrencies including SOL might also see larger gains.
Although the U.S. election is still full of uncertainty, Bitcoin has risen by 4.63% and SOL has surged by 9.54% in the past 24 hours. Therefore, if SOL does not show a significant decline in the future, Markus’s investment advice could lead to substantial losses for investors, so please remain cautious when making decisions.
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