10x Research: Look for the next crypto stock opportunity by referencing the previous Circle short squeeze rally

According to Odaily, 10x Research posted an analysis on X, pointing out that since a certain exchange was identified by analysts as potentially experiencing a short squeeze ahead of its February 20 earnings report, its stock price has surged by over 80% in less than three weeks. Although some hedge funds had already started to reduce their positions before the catalyst event (previously, shorts accounted for 17.8% of the outstanding shares), they may have suffered a paper loss of around 1 billion USD during the stock's sharp rally. 10x Research suggests that investors should pay attention to the scale of hedge fund short positions across the entire crypto stock sector to identify the next potential trading opportunity, as short covering provides strong upward momentum for crypto-related stocks, allowing them to outperform bitcoin. While the explosive power may not be as strong as the previous rally of a certain exchange, the risk-reward ratio remains attractive and comes with inherent downside protection, making it suitable for the current market environment.