Concern that FTX will sell its cryptocurrencies has created significant selling pressure on Bitcoin and altcoins.
With this selling pressure, BTC fell below $ 25,000, while Solana and many altcoins also decreased.
During the selling pressure on Bitcoin and altcoins, many investors opened short positions in altcoins such as SOL.
However, after the fear of selling pressure from FTX passed, BTC returned to normal and rose above $ 26,000 again.
While altcoins rose along with Bitcoin, altcoin bears who opened short positions for SOL and other altcoins for fear of a potential FTX sale faced the risk of liquidation.
Speaking to Coindesk at this point, Marex Solutions Digital Assets Co-Head Ilan Solot evaluated the impact of Bitcoin's rise on Solana.
“Potentially forced liquidations of short positions would likely place additional bullish pressures on the SOL price, leading to a short squeeze-induced rally.”
In addition, it was stated that the funding rates in futures transactions have been negative since Monday, while a positive rate indicates that there are many long transactions in the market and a negative rate indicates that there are many short positions.
At the time of writing, Bitcoin continues to trade at $26,573 and Solana continues to trade at $19.05.
*This is not investment advice.
