10x Research: You can refer to the previous Circle short covering market to find the next cryptocurrency opportunity

According to TechFlow, on March 10th, 10x Research published an analysis stating that Circle's stock price has risen by over 80% in less than three weeks since analysts pointed out the possibility of short covering before its financial report on February 20th. Although some hedge funds had already started reducing their positions before the catalyst event (previously short positions accounted for 17.8% of outstanding stocks), they may have suffered about $1 billion in book losses during the period of stock price surge. 10x Research recommends investors to pay attention to the size of hedge fund short positions in the entire cryptocurrency sector in order to find the next potential trading opportunity, as short covering provides strong upward momentum for cryptocurrency stocks, allowing them to outperform Bitcoin. Although it may not be as explosive as Circle, the risk return ratio is still attractive and comes with downward protection, making it suitable for the current market environment.