Bitcoin enters a correction period, Solana ecosystem sucks blood from the market
Original author: Mary Liu, BitpushNews
The crypto market rally continued to fall on Monday. After briefly falling to around $65,000 over the weekend, Bitcoin rebounded slightly to consolidate around $67,000-68,000, a drop of more than 8% from its previous historical high. Ethereum once fell below 3,500. The U.S. dollar recovered to above $3,500 by the close of U.S. stocks, falling nearly 3% in 24 hours.
Among the top 10 altcoins by market capitalization, only Solana (SOL) and Avalanche (AVAX) have achieved positive returns in the past 24 hours. Dogecoin fell the most, at 6%, while BNB, ADA, etc. all fell around 3%.
Solana ecological blood-sucking market
Data tracked by Santiment shows that SOL and the meme token The Book of Meme (BOME) built on Solana are the most popular tokens in the past two days.
The price of SOL surged 45% in 7 days, surpassing $200 for the first time since December 2021, although it is still below the all-time high of $259.96 in November 2021.
Cryptocurrency exchange Binance launched BOME perpetual futures on March 16, and BOME has surged 82% since its listing on March 10.
Santiment said in its market report: “BOME and SOL are the two most popular assets on X, Reddit, Telegram and 4 Chan as they have outperformed the market recently. People still think Solana and its meme coin are Ethereum A viable alternative to ecological projects”.
According to Santiment, the number of mentions of SOL on social media has risen to 322 times. Meanwhile, Google Trends (which measures interest in trending topics) at one point showed the global search query solana had a value of 100. A score of 100 represents the maximum number of searches observed for a term in a given time frame. This shows that more and more people are browsing information about solana on the Internet.
The popularity of the Solana ecosystem will echo its rising currency prices. Data tracked by Top Ledger and OurNetwork show that the transaction volume of decentralized exchanges based on Solana has reached 30 billion U.S. dollars this month, a tenfold increase from a year ago.
BTC is in the correction period before the halving, and Standard Chartered predicts it will reach $150,000 by the end of the year.
Some analysts believe that based on historical trends, Bitcoin is in a correction period before the halving.
Crypto trader and independent analyst Rekt Capital posted on
Lucas Kiely, chief investment officer of Yield App, also warned that Bitcoin is entering the danger zone before the halving.
Kiely believes: “Bitcoin’s price trend over the past week is a preview of future turbulence and a clear signal to buckle up as we enter the pre-halving ‘danger zone’. In the days before the halving, BTC plummeted by 40% in 2016. %, which plummeted 20% in 2020, we are just preparing for the price trend before the halving in this cycle.” Kiely predicts that Bitcoin may experience a 20% correction and continue to fluctuate around $60,0000.
However, Standard Chartered Bank raised its year-end price forecast for Bitcoin from $100,000 to $150,000, and predicted that BTC will reach a cycle high of $250,000 in 2025 and then stabilize around $200,000.
Standard Chartered has become one of the more Bitcoin-friendly traditional banks, with an active Bitcoin research team. Analysts at the bank had previously predicted that the price of Bitcoin would reach $100,000 by the end of 2024.
Standard Chartereds analysis is based on comparisons with gold prices after the launch of gold ETFs in the United States, as well as the correlation between ETF inflows and BTC prices. “We believe the gold analogy – in terms of ETF implications and optimal portfolios – remains a good starting point for estimating the ‘correct’ medium-term Bitcoin price level,” the report said.
Standard Chartered said in a separate report that the spot Ethereum ETF is expected to be approved on May 23, which will lead to inflows of up to $45 billion in the first 12 months, and the price of Ethereum will climb to $8 by the end of 2024. , 000 USD.
The report states: “By 2025, we expect the ETH to BTC price ratio to return to the 7% level seen for much of 2021-22. Given our estimated end-2025 BTC price level of $200,000, this means that the ETH price It’s $14,000.”
The pre-halving pullback coincides with the U.S. Federal Open Market Committee (FOMC) meeting ending on March 20, with investors eyeing signals from the Federal Reserve for a possible rate cut after last weeks inflation data exceeded expectations.
Economists at Goldman Sachs Group Inc. have changed their forecasts for the Fed to cut interest rates, predicting three rate cuts this year instead of the four previously forecast. The swap market has also reduced its bets on the Feds interest rate cuts, currently indicating a 25 basis point rate cut by the Fed in June. The probability is less than 50%.
To date, the price of Bitcoin continues to be directly affected by macroeconomic events, and further regulatory actions and Federal Reserve monetary policy may also continue to have an impact on the price of Bitcoin.
