10x Research: Refer to Circle's Short Squeeze for Next Crypto Stock Opportunities

Odaily News 10x Research posted an analysis on platform X, pointing out that since analysts suggested Circle might experience a short squeeze ahead of its earnings report on February 20th, its stock price has surged over 80% in less than three weeks. Although some hedge funds began reducing their positions before the catalyst event (with short interest previously accounting for 17.8% of the float), they likely faced approximately $1 billion in paper losses during the sharp price increase. 10x Research advises investors to monitor the size of hedge fund short positions across the entire crypto stock sector to identify the next potential trading opportunity. Short squeezes provide strong upward momentum for crypto-related stocks, allowing them to outperform Bitcoin. While the explosive potential might not match Circle's previous rally, the risk-reward ratio remains attractive and comes with inherent downside protection, making it suitable for the current market environment.