According to @QCompounding, research firm 10x Research, led by Markus Thielen, recommends a pairs trade of shorting Coinbase (COIN) stock while going long on Bitcoin (BTC). The firm's analysis indicates COIN shares are approaching overvaluation, having surged 84% in two months compared to BTC's 14% rise, creating a significant disconnect from fundamentals like trading volume. Thielen noted that a linear regression model shows 75% of COIN's price is explained by BTC's price and trading volumes, suggesting the stock's current premium is stretched and vulnerable to mean reversion. The report also highlights that MicroStrategy's (MSTR) perpetual preferred shares are rallying, potentially as investors front-run the company's anticipated inclusion in the S&P 500 index. According to analyst Jeff Walton, Bitcoin's record monthly close boosts MSTR's earnings per share to a level that qualifies it for the benchmark. The advance in preferred shares like STRK, which has returned 42% since its February launch, is also attributed to their attractive high yields, which currently surpass the Federal Reserve's target rate.

According to @doctortraderr, current market conditions present unique trading opportunities despite Bitcoin's (BTC) summer lull. NYDIG Research notes that declining BTC volatility, even at all-time highs, has made options strategies relatively inexpensive, offering a cost-effective way for traders to position for directional moves ahead of key July catalysts. Separately, 10x Research, led by Markus Thielen, identifies a significant dislocation between Coinbase (COIN) stock and its underlying fundamentals. Thielen argues COIN is approaching overvaluation, as its 84% price surge over two months has outpaced both Bitcoin's 14% rise and actual crypto trading volumes. Consequently, 10x Research recommends a pairs trade: going long on Bitcoin (BTC) while shorting Coinbase (COIN) to capitalize on a potential mean reversion.