The US presidential election day, which is critical for the Bitcoin and cryptocurrency markets, has arrived. While investors are wondering how BTC and the market will move, an updated analysis has arrived from 10X Research.
Stating that option investors are betting on sharp price fluctuations as the US presidential election draws to a close, 10x Research told investors which tactical transaction could be in the expected high volatility environment caused by the election.
Accordingly, 10x Research founder Markus Thielen suggested a long strategy in Bitcoin and a short strategy in Solana in a note he sent to his clients, namely before the US elections.
“A tactical trade heading into the election could include going long on Bitcoin and short on Solana,” Markus Thielen said, according to Coindesk.
Stating that the US election results will have far-reaching implications for cryptocurrencies, Thielen said:
“If Harris wins, other crypto ETFs like Solana could see less approval, which could lead to a 15% drop in Solana. If Harris wins, Bitcoin could see a more modest drop of around 9%.
In case of a possible victory for Trump, the bullish expectation continues and SOL, BTC and Ethereum may rise by approximately 5%.
Thielen said that the reason he suggested a short position for Solana was that, in addition to the possibility that Harris would win and bring down the price, the daily transaction fees on the Solana network would drop to $2.5 million.
“Daily transaction fees on Solana have dropped significantly from the record highs reached last month, signaling a bearish signal for the SOL token,” the analyst said.
Solana continues to trade at $161 at the time of writing.
*This is not investment advice.
