10x Research is recommending shorting Ethereum against Bitcoin, citing growing institutional preference for Bitcoin and declining interest in Ethereum. This recommendation comes as DeFi protocols like Aave face pressure due to ETH market shifts impacting liquidity and TVL. 10x Research’s Markus Thielen emphasizes the weak asset treasury outlook of Ethereum, prompting this strategy. This shift signals a market-wide preference for Bitcoin over Ethereum, affecting token liquidity, institutional flows, and amplifying short-term volatility in decentralized finance platforms. The research notes influential entities like Bitmine Immersion Technologies are retreating from ETH investments due to reduced retail demand. Market sentiment is also driving increased bearish flows into Ethereum impacting derivatives and on-chain metrics, especially for DeFi protocols. Notably, record $50 billion BTC options interest reflects institutional preference for Bitcoin. This shift in approach aligns with a broader risk-off sentiment impacting Layer 1/2 tokens and DeFi markets. Historical data suggests that large option expiries often lead to volatility for underlying assets. As Bitcoin continues to outperform in uncertain market conditions, it may indicate a market direction favoring the leading cryptocurrency. The research highlights reduced buying pressure on Ethereum, potentially shaping future market dynamics and impacting regulatory adjustments and technological advancements.