0xSun: The hedging strategy of going long on ETH and shorting alts currently has an overall profit of about 16%. Although the rise is not as much as ETH, the risk is lower.

BlockBeats news, on August 13, Smart Money and crypto KOL 0xSun (@0xSunNFT) stated that on August 1, the price of Ethereum was approximately $3700, and it has now risen to $4660, an increase of 26%. The rise of the shorted alts is concentrated between 5% to 15%, with an overall profit margin of about 16%. Compared to holding Ethereum outright, the hedging strategy experiences less psychological pressure when facing a downturn, especially since Ethereum once fell to $3360, where an outright long position might trigger a stop loss, while in hedging, the alts usually decline more than Ethereum, thus still enhancing the total profit and improving the holdings experience. Previously reported, on August 1, 0xSun mentioned that there is currently a significant divergence in the market between bulls and bears, and that he has opened a hedging transaction (going long on ETH while shorting a basket of alts) with a position ratio of about 1:1, believing that institutional funds buying ETH will not spill over to other alts. If the market continues to be bullish in the second half of the year, he believes it is highly likely that it will still be driven by ETH. If the market enters a bear market, he also does not believe that alts can stand alone, while ETH has at least the purchasing power from institutions to support it. The scenarios that could lead to the failure of this hedging idea are either that the alt season has truly arrived, with most alts consistently outperforming ETH, or that ETH is oscillating or leading the decline, while other alts fall less, which according to his experience in recent months, he thinks is unlikely.