10x Research: Refer to the previous Circle short covering trend to find the next crypto stock opportunity

SmartContractAuditor · 2026-03-10T14:02:49+00:00

10x Research analysis indicates that Circle's stock price has risen over 80% since the short covering expectations, and hedge funds may face losses of approximately $1 billion. It is recommended to monitor short positions in crypto stocks to find the next trading opportunity, as short covering drives upward momentum.

SmartContractAuditor

2026-03-10 14:02:49

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Odaily Planet Daily reports that 10x Research posted an analysis on the X platform indicating that after Circle was identified by analysts as potentially experiencing a short squeeze ahead of its February 20 earnings report, its stock price increased by over 80% in less than three weeks. Although some hedge funds had already begun reducing their positions before the catalyst event (with short positions previously accounting for 17.8% of circulating shares), the stock’s sharp rise may have resulted in approximately $1 billion in unrealized losses. 10x Research recommends investors monitor the hedge fund short positions across the entire crypto stock sector to identify potential trading opportunities, as short squeezes have provided strong upward momentum for crypto-related stocks, allowing them to outperform Bitcoin. While the momentum may not be as explosive as Circle’s previous rally, the risk-reward ratio remains attractive and offers downside protection, making it suitable for the current market environment.

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