0xSun: The current overall profit of the hedging strategy of going long on ETH and shorting altcoins is about 16%. Although the increase is not as high as ETH, the risk is lower.

According to CoinWorld news, on August 13, Smart Money and crypto KOL 0xSun (@0xSunNFT) stated that the price of Ethereum was about $3,700 on August 1 and has now risen to $4,660, an increase of 26%. The short positions in altcoins have seen an increase concentrated between 5% and 15%, with an overall profit margin of about 16%. Compared to holding Ethereum outright, the hedging strategy experiences less psychological pressure during downturns, especially since Ethereum had previously fallen to $3,360; an outright long position might trigger a stop-loss, while in a hedged position, altcoins typically decline more than Ethereum, still allowing for an increase in total profits and a better holding experience. Earlier reports indicated that on August 1, 0xSun mentioned that there is currently a significant divergence in the market sentiment, and personally, they have opened a hedging trade (going long on ETH while shorting a basket of altcoins), with a position size roughly at 1:1, believing that the institutional funds buying ETH will not spill over into other altcoins. If the market continues to rally in the second half of the year, it is believed that there is a high probability that ETH will still drive the market. If the market enters a bear phase, they do not believe that altcoins can thrive independently, while ETH at least has institutional buying power to support its price. The scenarios that could invalidate this hedging approach are either that the altcoin season has really arrived, with most altcoins consistently outperforming ETH, or that ETH experiences volatility or leads the decline while other altcoins do not drop much. Based on experiences from the past few months, they believe this possibility is relatively low.