FTX Token Liquidations: Hidn Sales Boost Bitcoin, Weigh on Altcoins

After the FTX Chapter 11 collapse, strategist Willy Woo dey argue say the “locked” tokens dem basically sell off through bankruptcy-linked arrangements, causing steady sell pressure on altcoins from 2023–2025. FTX administrators make liquidation priority, including big locked SOL holdings. Woo talk say hedge funds buy the discounted tokens (often 60%+ off) and quickly hedge by shorting SOL futures, then pair the shorts with staking/basis yields. E estimate near market-neutral returns of about 70%–80%. Retail buyers, wey no sabi the structure, usually enter after the indirect selling don already push prices down. One major divergence: Bitcoin strength. The article mention BTC dominance rising to around 55%–60% and BTC pushing past $88,000 in late 2025, while altcoins “flatlined.” CoinGecko snapshot put BTC around $71,285 (+2.47% over 24h). Altcoin Season Index still weak (~48), and altcoin market cap recovery no get momentum. Investor Simon Dixon (an FTX creditor) describe Chapter 11 as a value transfer wey leave ordinary creditors with heavy losses, reinforcing the case for self-custody. Trading takeaway: FTX-driven mechanics dey structurally favorable to Bitcoin and fit create ongoing friction for altcoin rallies.