Blofin: "The truth of selling" may occur in the coming days.

Blofin analysis points out that the results of the upcoming 2024 U.S. presidential election are approaching. For some memecoins, the "sell the news" may occur in the coming days, while for assets like $BTC and gold, selling volatility seems to be a better trading strategy. The reasons for "selling the news" are varied: the disappearance of uncertainty tends to lead investors and institutional traders to take profits or stop losses, while strategies based on statistical arbitrage, such as long and short positions, also drive the prices of outperforming assets back to their mean. However, with the development of the derivatives market, the rebalancing and hedging behavior of market makers has become one of the sources of "selling the facts," especially for some underlying assets with high volatility or a lack of liquidity. After the election, as uncertainty dissipates, the additional delta brought about by the volatility crash and mean reversion from the market makers' sell-off will particularly impact the market in a concentrated manner, especially before and after the market opens.