Republican candidate Donald Trump's victory in the 2024 US presidential election has led to a bullish trend in the cryptocurrency market. Bitcoin has reached a new all-time high, and the total market capitalization of the cryptocurrency market has increased by $205 billion in a single day.
However, as altcoins have also shown an upward trend, traders are looking for trading opportunities to capitalize on the market volatility. Therefore, 10x Research has presented five cryptocurrency trading ideas in a report shared with BeInCrypto following the election.
Trade 1: Sell short-term expiry Bitcoin puts with high volatility
The implied volatility of Bitcoin's spot options has soared to 85%, reaching levels similar to the January ETF launch. The gap between implied volatility and realized volatility has reached a record high of 50 points.
Volatility is expected to decrease soon, allowing traders to shift to directional strategies. Analysts say that managing gamma ahead of major events can be profitable.
Read more: 11 Cryptocurrencies to Add to Your Portfolio Before Altcoin Season
Trade 2: Short Ethereum for funding
After the September FOMC meeting, Ethereum gas fees and DeFi activity briefly increased, narrowing the yield gap between traditional bonds and Ethereum staking. However, later, as government bond yields rose, DeFi activity decreased, and Ethereum fees declined.
This trend suggests that Ethereum may lose its appeal until BlackRock launches an Ethereum ETF.
"It's best to avoid or consider shorting Ether until BlackRock launches an Ethereum ETF," the report shared by 10X Research with BeInCrypto said.
Trade 3: Bitcoin dominance, BTC still has good upside potential
In 2024, Bitcoin's dominance has surged from 50% to 60%, with its price stabilizing around $74,000. This trend reflects traditional finance (TradFi) investors allocating to ETFs and cryptocurrency holders reallocating from altcoins to Bitcoin.
Wallet activity suggests investors are holding Bitcoin rather than trading it, indicating trust and creating a supply shortage. Sustained dominance implies strong upside potential for Bitcoin.
"As traders increasingly trust Bitcoin over high-risk altcoins, a supply shortage is emerging. If Bitcoin's dominance continues to rise, the upside potential for Bitcoin is strong," the 10X Research analysts said.
Trade 4: Capitalize on the momentum of JITO, SOL, and others
Solana's influence is garnering attention in the cryptocurrency market, and interest in the network's liquid staking platform, Jito, is also increasing. The recent rise in Jito's fees has historically coincided with a JTO-USDT rally, suggesting potential gains.
Governance holders may not directly benefit, but airdrops can provide potential rewards. If JTO-USDT exceeds the 20-day moving average, it could present a strong investment opportunity.
Trade 5: Jupiter (JUP) activity remains strong
Donald Trump's victory has sparked speculation about the approval of a Solana ETF under the new SEC leadership. This positive impact is also observed in other protocols within the Solana ecosystem, such as Jupiter (JUP).
Read more: What is Blockchain and How Does it Work?
Despite a decrease in JUP-USDT trading volume, Jupiter maintained active activity with $9 billion in trading last week. Fees have been stable at $5 million per week, and exchange trades have increased significantly from 9 million in September to 27-30 million per week.
