Bitcoin Upset Solana and Altcoin Bears!
The ascent has left altcoin bears, who initiated short positions on Solana and other altcoins due to apprehensions about FTX sales, exposed to potential liquidation
Both Bitcoin and other altcoins were subject to significant downward pressure due to worries that FTX may sell its cryptocurrency.
BTC fell below $25,000 as a result of this selling pressure, and several altcoins, including Solana, also had fallen.
Many speculators started short positions in altcoins like SOL as a result of the adverse attitude that is hurting Bitcoin and other cryptocurrencies.
Bitcoin Upset Solana and Altcoin Bears! However, as soon as worries about potential selling pressure on FTX dissipated, BTC resumed its typical course and soared back above $26,000.
Those who had previously wagered against altcoins like SOL in anticipation of FTX selling found themselves facing the possibility of liquidation as altcoins followed Bitcoin’s rising trend.
Ilan Solot, Co-Head of Digital Assets at Marex Solutions, commented on this situation and provided Coindesk with information about the effects of Bitcoin’s revival on Solana.
Potentially forced short position liquidations “would likely add to the bullish pressure on the SOL price, causing a short squeeze-induced rally.”
Additionally, it was noted that since Monday, financing rates for futures transactions have been negative; a positive rate denotes a high volume of long transactions, while a negative rate denotes a high volume of short positions.
As of the publication of this article, Bitcoin is still trading at $26,573 while Solana is still at $19.05.
*This is not financial guidance.