PANews reported on November 5 that according to CoinDesk, as the US presidential election approaches, the market is betting on the possibility of large price fluctuations, which may bring challenges to trend traders. In view of this, 10x Research recommends a smart hedging transaction involving Bitcoin and Solana as a tactical option to deal with the market turmoil caused by the expected election.
Markus Thielen, founder of 10x Research, said in a note to clients on Monday that tactical trading for the election could involve going long on Bitcoin and shorting 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 could be reduced, potentially causing Solana's price to fall by 15%, while Bitcoin's decline could be more limited, at about 9%; if Trump wins, SOL, BTC, and Ethereum could rise by about 5%. In the event of a possible Trump victory, BTC and ETH could see greater gains than SOL, as spot ETFs pegged to Bitcoin and Ethereum are already trading 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 tight, with Democrat Harris and Trump, who is said to be crypto-friendly, tied 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 to 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.
