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

Deep Tide TechFlow News: On March 10th, 10x Research published an analysis indicating that after Circle was identified by analysts as potentially experiencing a short squeeze just before its February 20th 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), they may have incurred approximately $1 billion in unrealized losses during the sharp price surge. 10x Research recommends investors monitor the size of 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 growth 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.