10x Research: The preferred tactical trade before the U.S. election is to go long on Bitcoin and short on Solana

News on November 5, according to CoinDesk, as the US presidential election approaches, the market is betting on potential significant price fluctuations, which may pose challenges for trend traders. In view of this, 10x Research suggests a wise hedging trade involving Bitcoin and Solana as a tactical choice to deal with expected market turbulence caused by the election.

Markus Thielen, founder of 10x Research said in a report to clients on Monday that tactical trades for the election could involve going long on Bitcoin and shorting Solana. The election results will have profound effects on digital assets including potentially approving US ETFs pegged to alternative cryptocurrencies like SOL.

If Harris wins, these ETFs' chances of approval might decrease possibly leading to a drop in Solana's price by about 15%, while Bitcoin's decline might be more limited at around 9%; if Trump wins SOL,BTC and Ethereum could rise approximately by 5%. Under circumstances where Trump might win BTC and ETH could gain more than SOL because spot ETFs pegged to Bitcoin and Ethereum are already trading in the United States attracting billions of dollars from investors this year. Voting for new president will take place in few hours in USA. According latest reports,the presidential race is neck-and-neck with Democrat Harris and reportedly crypto-friendly Trump evenly matched in several swing states.

According to Thielen another reason for shorting SOL is that daily transaction fees on the Solana network have dropped down $2.5 million whereas based upon data from Artemis & TokenTerminal it had reached an all-time high of $5 million October24th.Historically,similar magnitude drops have put pressure token prices.