According to Markus Thielen of 10x Research, Coinbase (COIN) shares are rapidly approaching an overvaluation threshold, creating a prime opportunity for a pairs trade. Thielen recommends shorting COIN while simultaneously going long on Bitcoin (BTC) to capitalize on a potential tactical reversal. The analysis highlights a significant fundamental disconnect, noting that COIN's stock has surged 84% over the past two months, while Bitcoin has only risen 14%. According to 10x Research's linear regression model, 75% of COIN's price is typically explained by Bitcoin's price and trading volumes, but the recent rally appears disconnected from these underlying fundamentals, with crypto trading volumes hovering around $108 billion. Thielen states this rare deviation suggests Coinbase’s valuation is extended and vulnerable to mean reversion, making the short COIN, long BTC position an attractive strategy.

According to @doctortraderr, traders are facing two distinct market opportunities. Firstly, NYDIG Research highlights that Bitcoin's (BTC) decreasing volatility, despite reaching new all-time highs, has made options strategies relatively inexpensive. This presents a cost-effective chance for traders to position for directional moves ahead of potential market-moving catalysts in July. Secondly, 10x Research, led by Markus Thielen, suggests that Coinbase (COIN) stock is approaching overvaluation. Thielen notes a fundamental disconnect, as COIN's 84% surge in two months has outpaced both Bitcoin's 14% rise and underlying trading volumes. Consequently, 10x Research recommends a pairs trade: going long on Bitcoin (BTC) while simultaneously shorting Coinbase (COIN) to capitalize on this potential valuation correction.