Bitcoin faced resistance a few times near $74,000, but it ultimately broke through, and last week the whole market was really strong. Ethereum rose more than 14%, and especially altcoins like Solana performed far better than Bitcoin. Solana was up 12%, and this kind of move was a broad-based risk-asset rally you really haven’t seen in a long time.

As geopolitical tensions eased, oil prices also fell and the dollar weakened, which created a really favorable environment for risk assets like cryptocurrencies. Commercial shipping has resumed in the Strait of Hormuz, and Iran’s statements also seem to have cooled down a bit. Thanks to that, the macro environment has eased for the first time since the war.

That a short squeeze played a big part is clear when you look at the data. Over the past 24 hours, $340 million was liquidated, and 83% of that was short positions. Ethereum shorts were liquidated at about $127.9 million, and Bitcoin shorts at about $124.5 million. Solana also rose along with them as $18.5 million was liquidated.

But it doesn’t seem to be just a simple squeeze. The fact that Ethereum rose 4.6 points more than Bitcoin on a weekly basis, and Solana also rose 2.3 points more, means that capital is truly flowing into risk assets. When altcoins outperform Bitcoin, it’s a genuine signal of a recovery in risk appetite.

Going forward, the March Federal Reserve meeting will likely be important. Oil prices are still high, but signs of the Strait of Hormuz reopening could change inflation calculations. Whether expectations for rate cuts will remain will be decided based on Fed Chair Powell’s remarks and the dot plot. Since altcoins like Solana have shown moves as strong as this, market sentiment has definitely turned more positive.