Cryptocurrency prices were back in the red on Friday and global cryptocurrency market capitalization fell around 4% to $ 2 trillion after Bitcoin was again refused to regain the $ 50,000 level.
Bitcoin’s price is currently down 6% from its weekly high of $ 50,482 and Ethereum lost nearly 8% over the same period, with the price of Ether now standing at $ 3,110.
The general retreat of the crypto market was expected across Asia, according to analysts, but Solana kept the party alive. The price of the SOL token hit a new all-time high on Friday morning, rising over 22% to $ 84.04 in the past 24 hours.
Bitcoin is falling, but fundamentals are strong
Bitcoin’s price level of $ 50,000 has been identified by market analysts as a critical area for BTC to push even higher, but as prices rise, traders also have the opportunity to take profits.
“In the past 30 days, BTC / USDT has increased nearly 20% from 39,000 to 47,000 but has struggled to stay above 50,000. As it neared the 50,000 mark, on-chain data showed an increase in foreign exchange inflows, which could mean an increase in selling pressure, “Hex Trust trader Rolland Hoang told Forkast.News in an interview.
The general crypto pullback in recent days appears to be broadly shared by most risk assets in macro markets, according to Justin d’Anethan, head of global exchange sales at Eqonex for digital assets.
“I would attribute this decline to trading and speculation rather than fundamentals and long-term investments. The narrative and the basics really haven’t changed, ”D’Anethan told Forkast.News. “Miners still seem to be holding coins, the reserves on the exchange are low, which suggests less selling pressure, and the supply of stablecoins is plentiful. Things don’t go in a straight line and after many up-sessions, in traditional markets and crypto, some of the traders understandably take profits. “
The depreciation of the crypto market is not yet a cause for concern and talks about an impending bear cycle are premature, according to on-chain data.
“The market is structurally better positioned for Bitcoin than previous rallies, with on-chain and derivatives positioning being much more balanced. Ethereum is more nuanced as net exchange balances are slowing, suggesting market sentiment may be easing, ”said Toby Chapple, head of trading at ZeroCap, an Australia-based retail digital asset company.
Chapple told Forkast.News that the upcoming Jackson Hole Federal Reserve meeting and the Federal Open Market Committee (FOMC) meeting next month could also pause the bull narrative of the crypto market as the market sees the possibility of reducing liquidity by curbing quantitative easing, which would inevitably create waves in world markets.
“What happens next could likely follow one of three scenarios,” said Hoang of Hex Trust. “If BTC / USDT stays above 47K (200MA) we could see further uptrend given stable market dominance. If it trades sideways between 44K and 50K we could expect dominance to decline and altcoins show strength. But if BTC drops below 44K, it could consolidate in the 38K-41K range with an increase in dominance. “
The Solana Prize is not going to stop
Solidifying its top 10 position with a market cap of over $ 24 billion, Solana appears on the verge of flipping decentralized finance (DeFi) rival Polkadot (DOT) to 9th on CoinMarketCap’s rankings.
Solana has been marketed as a potential rival to Ethereum, which currently hosts the vast majority of DeFi.
Institutional interest in Solana is also beginning to peak as Osprey Funds – a leading boutique digital asset investment firm – registered the Osprey Solana Trust with US securities regulators on Tuesday.
Osprey appears to have beaten Grayscale in the race to launch a Solana investment vehicle. On February 26, 2021, Grayscale published an initial list of assets being considered for inclusion in the Grayscale Trust.
Solana was one of the 13 additional assets Grayscale wanted to add to its family of products. Others include 1inch (1INCH), Bancor (BNT), Curve (CRV), Internet Computer (ICP), Kava (KAVA), Kyber Network (KNC), Loopring (LRC), NEAR (NEAR), Polygon (MATIC), Ren (REN), Universal Market Access (UMA) and 0x (ZRX).
The DeFi ecosystem on Solana is growing faster and faster. Solana hosts a large community of high-end developers and is arguably the fastest blockchain.
“Solana’s rigor is evident in the innovations it prides itself on. It’s a typical example of a chain built on the shoulders of those who walked before them, ”Ben Caselin, director of research at AAX Exchange, told Forkast. News in the interview. “At the same time, the project responded quickly to trends and if we look at the top projects on Solana, we can see high-quality projects such as Serum (DEX), Raydium (liquidity provider), Step.Finance (Frontpage to Solana), Solible (NFT), Maps.me (Maps) and Audius (music streaming platform). “
Solana doesn’t appear to be slowing anytime soon, and SOL’s price is currently hovering just below its all-time high, which was published at press time on Friday.