As the U.S. presidential election approaches, markets are anticipating significant volatility, leading traders to consider a strategic opportunity involving Bitcoin (BTC) and Solana (SOL).

Key Insights

1. Tactical Trading: 10X Research suggests that a potential strategy could be to go long on Bitcoin while shorting Solana.
2. Election Impact: If Kamala Harris is elected, the possibility of U.S.-based exchange-traded funds (ETFs) for alternative cryptocurrencies like SOL may diminish, which could lead to a 15% decrease in Solana's value according to Thielen. Conversely, a Trump victory could result in an uptick for Bitcoin, Solana, and Ethereum of around 5%.
3. Current Market Conditions: Daily transaction fees on Solana have sharply decreased, which historically has negatively affected token prices.

Market Movements

Both Bitcoin and Ethereum may benefit more post-election than Solana, particularly as these cryptocurrencies already have ETFs trading in the U.S., accumulating significant investor capital this year.

"A tactical trade heading into the election could involve going long bitcoin and short Solana," Markus Thielen, founder of 10X Research, stated in a note to clients.

Translation: Thielen explained that depending on the election outcome, there could be substantial consequences for digital assets.

As of now, the ratio of SOL to BTC is trading at 0.00235, indicating ongoing responses to market sentiments as the election nears.