According to ChainCatcher, as reported by CoinDesk, with the U.S. presidential election approaching, the market is betting on potential significant price volatility, which could pose challenges for trend traders. In light of this, 10x Research recommends a prudent hedge trade involving Bitcoin and Solana as a tactical choice to respond to expected market turmoil triggered by the election.
Markus Thielen, founder of 10x Research, stated in a report to clients on Monday that tactical trades related to the election may involve going long on Bitcoin and shorting Solana. The election results will have a profound impact on digital assets, including the potential approval of U.S. ETFs linked to alternative cryptocurrencies such as SOL. If Harris wins, the likelihood of these ETFs being approved may decrease, potentially leading to a 15% drop in Solana's price, while Bitcoin's decline may be more limited at around 9%; if Trump wins, SOL, BTC, and Ethereum could rise by about 5%. In the case of a potential Trump victory, BTC and ETH may see greater gains than SOL, as spot ETFs linked to Bitcoin and Ethereum have already been trading in the U.S. and have attracted billions of dollars in investor funds this year.
The U.S. will vote to elect a new president in a few hours. According to the latest reports, the presidential race is tight, with Democrat Harris and the reportedly cryptocurrency-friendly Trump in a dead heat in several swing states. According to Thielen, another reason to short SOL is that the daily transaction fees on the Solana network have dropped to $2.5 million, whereas, according to data from Artemis and TokenTerminal, the fees hit a historic high of $5 million on October 24. Historically, declines in fees of a similar magnitude have put pressure on token prices.
