TechFlow news, November 5 — According to CoinDesk, 10X Research advised investors on Tuesday to adopt a tactical trading strategy ahead of the U.S. election: going long on Bitcoin (BTC) while shorting Solana (SOL). Markus Thielen, founder of the firm, said that if Harris wins, the likelihood of approval for altcoin ETFs would decrease, potentially causing SOL to drop by 15%, while BTC might decline only 9%.
Thielen noted that a Trump victory could lead to approximately 5% gains for SOL, BTC, and Ethereum. However, since spot BTC and ETH ETFs are already trading in the U.S. and have attracted substantial capital, they may see stronger upside compared to SOL. Currently, VanEck, 21Shares, and Canary Capital have filed applications with the U.S. Securities and Exchange Commission for SOL ETFs.
Another reason for shorting SOL is that Solana's daily network transaction fees have dropped from a record high of $5 million on October 24 to $2.5 million. Historical data shows that declining transaction fees typically put downward pressure on token prices. At the time of writing, the SOL/BTC pair was trading at 0.00235 on Binance.
