As Bitcoin (BTC) surpassed its ATH to hit the $75000 mark, analysts recommending to invest in long Bitcoin and short on altcoin Solana (SOL)
Amidst the US election and just before BTC crossed its ATH came this recommendation from 10X Research founder Markus Thielen. As crypto investors wondered how the market, especially Bitcoin would react to the elections, 10X Research came out with this advisory.
As sharp price fluctuations are expected, option investors should concentrate on tactical transactions due to the high volatility of the crypto environment. Hence a long strategy for Bitcoin and a short one for Solana is ideal.
“A tactical trade heading into the election could include going long on Bitcoin and short on Solana,” Markus Thielen said.
Thielen underlined how the US election results could swing prices as Solana is likely to drop 15% if Kamala Harris wins while Bitcoin would experience a modest decline of 9%.
If Trump wins the US election then Ethereum, BTC and SOL are expected to continue with the bullish trend and surge 5%.
Apart from the possibility of a Kamala Harris win, the reason why Thielen has suggested a short position for Solana is the chances of the network's daily transaction fees declining to $2.5 million.
“Daily transaction fees on Solana have dropped significantly from the record highs reached last month, signalling a bearish signal for the SOL token,” Thielen added.
At the time of publication, SOL was trading at $180.36, up by 12.71% in the last 24 hours while BTC was at $73,326, up 6.45%. The market cap of Solana has risen to $86 billion while Bitcoin stands at $1.45 trillion. Solana’s trading volume is up 183.58% to reach $8.29 billion while Bitcoin’s volume has increased by 132.29% in the last 24 hours to touch $96.92 billion.