As bitcoin (BTC) moves higher, the recently shorted alternative cryptocurrencies like Solana’s SOL may see leverage liquidations and exaggerated price rallies. Since Monday’s brief move below crucial support at $25,000, bitcoin has risen over 6% to trade near $26,600, CoinDesk data show. Upbeat China August retail sales and factory output data released early Friday revived risk sentiment in financial markets, clearing the way for continued price gains in the leading cryptocurrencies. Bitcoin cash (BCH) led advancers, adding 8% over the past 24 hours. Maker DAO’s MKR followed with a rise of 5%. XRP, Ether (ETH), SOL, Tron’s TRX and dogecoin (DOGE) are all tracking bitcoin higher, as usual. The altcoin bounce comes days after traders sold these tokens, pricing in the possibility of defunct exchange FTX securing approval from the bankruptcy court to sell assets from its multibillion dollar cryptocurrency holdings. The recovery puts altcoin bears, who took leveraged bets on SOL and other tokens declining because of potential sales by FTX creditors, at risk of liquidation.
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Written by Bankerage Published on September 15, 2023