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10x Research Outlines 5 Crypto Trades Following Donald Trump’s Election Victory

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In Brief

  • Bitcoin Strategies: Sell short-dated Bitcoin puts to capitalize on high implied volatility (85%) and strong BTC dominance (60%), indicating BTC outperformance.
  • Ether & Altcoin Trends: Lower DeFi activity and bond yield pressures suggest shorting Ether as a funding option until Ethereum ETFs enter.
  • Solana Opportunities: Jito’s MEV and liquid staking platform gains traction, with activity spikes signaling potential; Jupiter’s steady $9B weekly trades and speculation of a Solana ETF offer promising tailwinds.
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With Republican candidate Donald Trump winning the 2024 US Presidential Elections, the crypto market noted an upswing. Bitcoin formed a new all-time high, and the total crypto market cap increased by $205 billion in a day.

However, with altcoins rallying as well, traders are seeking trade opportunities to take advantage of market volatility. Thus, in a report shared with BeInCrypto, 10x Research has presented five post-election crypto trade ideas.

Trade 1: Sell Bitcoin Puts With Elevated Volatility and Shorter Maturity

Implied volatility for Bitcoin’s at-the-money options has surged to 85%, similar to levels during January’s ETF launch. The gap between implied and realized volatility now stands at a record 50 points.

Volatility is expected to drop soon, allowing traders to shift to directional strategies. Hence, according to the analysts, managing gamma ahead of major events remains profitable.

Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season

Bitcoin 1 Week Implied ATM Vol vs. Bitcoin 30 Day Realized Volatility.
Bitcoin 1 Week Implied ATM Vol vs. Bitcoin 30 Day Realized Volatility. Source: 10x Research

Trade 2: Use Ethereum as a Funding Short

After the September FOMC meeting, Ethereum gas fees and DeFi activity briefly rose, narrowing the yield gap between traditional bonds and ETH staking. However, later, as treasury bond yields increased, DeFi activity declined, reducing Ethereum fees.

This trend suggests ETH may be less attractive until Ethereum ETFs from BlackRock enter the market.

“Until BlackRock begins marketing Ethereum ETFs, Ether may be better avoided or considered as a funding short,” 10X Research said in a report shared with BeInCrypto.

Ether (LHS) vs. Ethereum Network Fees (RHS)
Ether (LHS) vs. Ethereum Network Fees (RHS). Source: 10x Research

Trade 3: Rising Bitcoin Dominance Still Indicates BTC Outperformance

In 2024, Bitcoin dominance has surged from 50% to 60%, even as its price holds steady at around $74,000. This trend reflects a shift by both TradFi investors via ETFs and crypto holders reallocating from altcoins to Bitcoin.

Wallet activity shows investors are holding rather than trading Bitcoin, signaling trust and creating a supply shortage. Continued dominance suggests strong potential for Bitcoin to outperform.

“A supply shortage is emerging as traders increasingly trust Bitcoin, especially at the expense of higher-beta altcoins. As long as Bitcoin dominance continues to rise, the potential for Bitcoin to outperform remains strong,” 10X Research analysts said.

Bitcoin dominance (LHS) vs. Bitcoin (RHS).
Bitcoin dominance (LHS) vs. Bitcoin (RHS). Source: 10x Research

Trade 4: Jito Capitalizes on Solana’s Upside Momentum

Solana’s influence in the crypto market is sparking interest in protocols like Jito, a liquid staking platform on the network. Jito’s recent fee spikes have historically aligned with rallies in JTO-USDT, suggesting potential gains.

While governance holders may not benefit directly, airdrops offer possible rewards. If JTO-USDT surpasses its 20-day moving average, it could present a strong investment opportunity.

JTO-USDT (LHS) vs. Fees (RHS)
JTO-USDT (LHS) vs. Fees (RHS). Source: 10x Research

Trade 5: Activity on Jupiter Remains Strong

With Donald Trump’s win, speculation is arising about a Solana ETF approval under potential new SEC leadership. Consequently, this positive impact is also being observed in other protocols within the Solana ecosystem, such as Jupiter (JUP).

Read More: What Is Blockchain and How Does it Work?

JUP Trading Volume (LHS) vs. JUP-USDT (RHS)
JUP Trading Volume (LHS) vs. JUP-USDT (RHS). Source: 10x Research

Despite lower JUP-USDT volume, Jupiter maintained strong activity with $9 billion in trades last week. Fees remain steady at $5 million weekly, and swap transactions have increased significantly to 27-30 million weekly from 9 million in September.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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