10x Research: Long Bitcoin and Short Solana Are the Preferred Trading Strategies Before the US Election

As the U.S. presidential election approaches, the market is betting on the possibility of large price fluctuations, which may pose challenges for trend traders. In view of this, 10x Research recommends a smart hedging trade involving Bitcoin and Solana as a tactical option to deal with the expected election-induced market turmoil. 10x Research founder Markus Thielen said in a note to clients on Monday that tactical trading for the election may involve going long Bitcoin and short Solana. The election results will have a profound impact on digital assets, including the possible approval of U.S. ETFs pegged to alternative cryptocurrencies such as SOL. If Harris wins, the likelihood of these ETFs being approved may be reduced, which may cause Solana prices to fall by 15%, while Bitcoin's decline may be more limited, about 9%; if Trump wins, SOL, BTC, and Ethereum may rise by about 5%. In the case of a possible Trump victory, BTC and ETH may see greater gains than SOL, as spot ETFs pegged to Bitcoin and Ethereum are already traded in the United States and have attracted billions of dollars in investor funds this year. The United States will vote in a few hours to elect a new president. According to the latest reports, the presidential race is in a stalemate, with Democrat Harris and Trump, who is said to be friendly to cryptocurrencies, running neck and neck in several swing states. According to Thielen, another reason to short SOL is that daily transaction fees on the Solana network have dropped to $2.5 million, compared with an all-time high of $5 million on October 24, according to data from Artemis and TokenTerminal. Historically, similar drops in fees have put pressure on token prices. (Coindesk)