As Bitcoin hovers near record territory, 10x Research is advising traders to protect their profits, not by selling BTC, but by shorting Ethereum.
In a new client report, 10x founder Markus Thielen outlined what he calls one of the most effective tactical hedges in the current crypto market: long Bitcoin, short Ethereum. The firm’s altcoin model has consistently favored this positioning through October, diverging from the popular belief that ETH will rally into year-end.
Why Ethereum Is the Weak Link Right Now
Thielen points to a combination of weak treasury inflows, slowing institutional demand, and bearish derivatives sentiment as reasons to stay cautious on Ethereum. One of the key factors, he says, is the cooling activity from Bitmine Immersion Technologies, a company that aggressively accumulated ETH earlier this year.
“Bitmine’s share issuance has slowed dramatically since September,” Thielen explained. “With retail demand fading, its ability to keep buying ETH is now limited. If Bitmine is tapped out, so is Ethereum’s upside, at least for now.”
Derivatives Data Reveals Investor Skepticism
Options market behavior reinforces this view. According to Thielen, Deribit traders are loading up on ETH puts, indicating growing concern about downside risk. Meanwhile, Bitcoin’s options open interest has exploded past $50 billion, with most traders positioning for upside via calls, signaling clear divergence between the two majors.
On-chain and search data back the story: Google Trends show falling global interest in Ethereum, suggesting the pool of new buyers is shrinking as Bitcoin dominates institutional headlines.
A Smarter Way to Play the Market
Rather than exiting positions or chasing short-term altcoin rallies, Thielen argues that a long-BTC/short-ETH setup provides both exposure and insurance. The trade is designed to capture Bitcoin’s continued strength while neutralizing potential losses if the market turns volatile.
“This is a straightforward and effective hedge,” Thielen wrote. “Even if Bitcoin breaks lower, the ETH short should offer protection, and if BTC breaks higher, Ethereum is likely to lag.”
In essence, 10x Research’s message to traders is clear: ride Bitcoin’s momentum, but don’t ignore Ethereum’s cracks.