Odaily Planet Daily reported that crypto KOL 0xSun (@0xSunNFT) posted on social media that the current market is seriously divided between bulls and bears, and that he has opened a hedging transaction (long ETH while shorting a basket of altcoins) with a position of approximately 1:1.

The logic behind this operation is that ETH was the primary driver of the late June rally, and institutions, following MicroStrategy's lead, purchased ETH through coin-to-equity financing. Within the stablecoin narrative, ETH is also a core infrastructure and settlement layer. Considering MicroStrategy's previous purchase of BTC, which drove the price upward, most altcoins ultimately saw gains far less than Bitcoin. The funds used by coin-to-equity and institutions to purchase ETH are unlikely to spill over into other altcoins.

According to CMC data, only 20 of the top 200 tokens have seen a greater increase than ETH in the past 30 days, including BONK, ZORA, CFX, and ENA, which were clearly driven by favorable events.

The altcoins follow the previous short-selling logic, giving priority to those with high market capitalization, non-leading, weak performance, and low presence, and short selling is dispersed, with stop-loss orders set to prevent a single target from exploding.

0xsun added that if the bull market continues in the second half of the year, ETH will likely continue to drive it. If the market enters a bear market, altcoins won't be immune, and ETH at least has institutional buying power to back it up. This hedging strategy could fail if either the altcoin season truly arrives, with most altcoins consistently outperforming ETH, or if ETH experiences volatility or leads the decline, while other altcoins don't fall much. Based on my experience over the past few months, I personally believe this scenario is unlikely.