Solana Rose 10% and Bitcoin 5%: Is the Rotation Into Altcoins Starting?
Solana (SOL) rose 11% and Bitcoin (BTC) gained 5.9% on September 18, driven by central bank rate decisions and short squeezes. Solana's increase was also attributed to a network upgrade and its smaller market cap. Both cryptocurrencies showed gains, ruling out a rotation into altcoins. Solana later experienced a pullback, while Bitcoin remained stable.
How this was made
The 30-second read
Why it matters
The upgrade provides a tangible catalyst for Solana, while Bitcoin’s move reflects broader macro dynamics.
Market read
Highlights a potential short‑term altcoin rally but cautions that a true rotation has not begun.
What to watch
Liquidity constraints on Solana exchanges and potential regulatory scrutiny of crypto upgrades.
Background
The article analyzes a single‑day crypto rally linked to recent Fed and BoJ rate decisions and a Solana network upgrade.
Ticker impact
Solana surged 11% on Sep 18 after deploying the third phase of the SIMD-0525 upgrade, which reduced slot time and improved network speed.
Potential further 5-10% gain in the next 2‑3 days if buying pressure continues.
Network upgrade is a concrete catalyst and the price already reacted strongly.
Bitcoin rose 5.9% on Sep 18, buoyed by short-covering after a $170 million liquidation cascade following the Fed rate hike.
Likely modest continuation or sideways range pending further macro data.
Price move is tied to macro and short-cover dynamics, not a unique company event.
Market effects
The rally may boost interest in other high‑throughput layer‑1 blockchains.
U.S. Treasury yield dip and yen weakness contributed to the crypto rally.
Shows how central‑bank policy and network upgrades can jointly drive crypto markets.
Counterpoint
The sharp Solana gain could be a short‑term squeeze; a pullback may follow as traders take profits.
Key entities
- cryptocurrencySolana
Layer‑1 blockchain that saw an 11% price jump after a network upgrade.
- cryptocurrencyBitcoin
Leading crypto that rose 5.9% on the same day due to short-covering.
