How to invest after the election? 10x analysts reveal 5 major trading strategies, first shorting 'this coin'?

BTC hit a new high of $76,849 on the day after the US presidential election (11/7), with a price of $75,725 at the time of writing, down 1.56% from yesterday. Taking advantage of the overall market rise, research firm 10x Research is using the recent high volatility to seek profit opportunities.

Strategy 1: Sell BTC short-term put options

The implied Volatility of the BTC at-the-money (ATM) options has surged to 85%, close to the level when the BTC ETF was listed in January, causing a record-breaking 50-point gap between implied Volatility and actual Volatility. 10X Research believes that in the above situation, Volatility will soon decrease; therefore, selling short-term bearish options (Sell Puts) for BTC is a feasible hedging strategy.

Image source: 10x Research BTCVolatilityrise

Strategy 2: Shorting Ethereum coin

After the September FOMC meeting, the interest rate cut narrowed the yield gap between US bonds and Ethercoinstake, causing a temporary rise in Ethereum Gas Fees and Decentralized Finance activities; however, with the increase in US bond yields, Decentralized Finance activities and Ethereum Gas Fees income have once again dropped. 10x Research believes that this trend indicates that until there is a significant net inflow into BlackRock's Ethereum ETF, Ethereum's attractiveness to the market may drop; therefore, "shorting" Ethercoin can be used instead of "holding".

Image Source: 10x Research Ethereum network transaction fees decrease

Strategy 3: Continue to HODL BTC

BTC dominance has surged to 60% in the past two days, indicating its significant outperformance compared to altcoins; it also reflects TradFi investors buying BTC through ETFs and cryptocurrency holders reallocating funds from altcoins to BTC.

On the other hand, on-chain data shows that at this stage Whales prefer to hold rather than trade BTC, resulting in a continuous decrease in exchange BTC balance (Whale withdrawals). Therefore, 10x believes that BTC will continue to maintain its market dominance and outperform the overall market.

Image source: 10x Research Bitcoin market rise

Strategy 4: Focus on Jito ($JITO)

Solana network activity has recently significantly increased, among which the Liquidity stake protocol Jito ($JITO) with the highest TVL may benefit from this. If the $JTO price breaks through the MA20, it may trigger further upward movement.

Strategy 5: Focus on Jupiter

Similar to the fourth point, if Trump wins the election smoothly, there is a possibility of increasing the chances of $SOL Spot ETF application and approval, which will benefit Solana's top Decentralized Finance. Jupiter ($JUP), which combines Liquidity Aggregator and on-chain Perpetual Contract Trading, is one of the potential stocks.

What are the potential issues with the strategy proposed by 10X?

Overall, the short-term profit strategies proposed by 10x Research can be roughly divided into three aspects, bullishBTC, bearish Ethercoin, and optimistic Solana blue chip Decentralized Finance governance Token.

"City of encryption" reminds you that the circulating supply of both governance tokens $JUP and $JITO has not reached 20% of the Aggregate Supply, which means they may face price dilution caused by token unlocking in the future; especially $JITO, which will see an extremely large unlocking equivalent to 105% of the current Circulating Supply in 29 days, releasing tokens worth as much as 380 million US dollars at once. Investors must do their own research, DYOR always comes first.

Image source: Tokenomist Jito ($JITO) will face a large token unlock

[Disclaimer] There are risks in the market, and investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, perspectives, or conclusions in this article are applicable to their specific situation. Invest at your own risk.