With the US presidential election approaching, expected price fluctuations in the market may challenge trading strategies. In this environment, 10x Research recommends investors to open a "pair trade" between Bitcoin (BTC) and Solana (SOL). The company's founder, Markus Thielen, recommends opening a long position in Bitcoin and a short position in Solana before the election.

Election Results and Impact on Digital Assets

Thielen states that the election results could have far-reaching effects on digital assets. The approval status of exchange-traded funds (ETFs) based on alternative crypto assets, especially those based in the US, could change depending on the election results. Thielen says, “If Kamala Harris wins, the approval probability of alternative crypto ETFs like Solana would decrease, which could lead to a 15 percent loss in Solana. In contrast, the decline in Bitcoin could be more limited and limited to 9 percent.” However, in the event of Donald Trump’s victory, Solana, Bitcoin and Ethereum are expected to increase by around 5 percent.

Potential Upside Expectations for Bitcoin and Ethereum$BTC

Bitcoin and Ethereum currently have spot ETFs trading in the US, which have attracted billions of dollars in investment this year. Thielen says Bitcoin and Ethereum could see even bigger gains if Trump wins. Crypto-friendly policies are expected to pave the way for a more positive approach to regulation and boost investor confidence.

Solana, on the other hand, has yet to receive approval for a spot ETF. Companies such as VanEck, 21Shares and Canary Capital have filed with the SEC for Solana ETFs. However, such approval may become more likely with a Trump victory.

Solana Network Fees Drop and Short Position Strategy$SOL

Thielen cited another reason for opening a short position for Solana as the decline in network fees. According to Artemis and TokenTerminal data, daily transaction fees on the Solana network have fallen to $2.5 million from a peak of $5 million on Oct. 24. Thielen noted that such declines in network fees generally have a negative impact on token prices, and that this development could put price pressure on Solana.

Result: Strategic Matching Transaction Proposal

10x Research states that investors should carefully consider a paired trading strategy between Bitcoin and Solana, considering that the US elections could cause volatility in the crypto market. During this period, it is important for investors to be prepared for market volatility based on election results and develop appropriate strategies.