Major cryptocurrencies like Bitcoin, Ethereum, and Solana have already reached their lowest points of the cycle, according to former ARK Invest executive Chris Burniske, who predicts that the long-term uptrend for these digital assets will persist into 2024 and 2025 despite potential market fluctuations.
Bitcoin and other cryptocurrencies are facing intense pressure as prices drop and short-term holders offload their assets, signaling a possible capitulation phase and suggesting further downside potential. Additionally, major altcoins like Ethereum, Solana, and Cardano have witnessed a decline in their Total Value Locked (TVL) over the past week, indicating a decrease in popularity and utilization in the decentralized finance (DeFi) ecosystem.
Bitcoin and Ether rose over 3% to reach their highest prices in a week, while Solana, NEAR, Cardano, Polkadot, and Binance's altcoins also experienced gains, following a surge in traditional markets; however, experts predict that the downtrend in digital assets may continue for the next few weeks.
Solana (SOL) and Cardano (ADA) led the gains in the crypto market as Bitcoin (BTC) gradually recovered, with large holders returning to the market aiding the recovery.
Crypto analyst Benjamin Cowen warns that Solana (SOL) could experience a significant decline similar to Cardano (ADA) in the last cycle, potentially falling over 50% to $10, while also predicting a possible double bottom pattern for Bitcoin (BTC) and suggesting Litecoin (LTC) will underperform Bitcoin.
Solana (SOL) has the potential for significant gains in the next bull market, as it competes against other projects in the crypto space, while Binance Coin (BNB) faces uncertainty due to regulatory developments in the United States.
Solana (SOL) price dropped 12% and found support at $19.15, but could rally 10% if bullish momentum continues.
The bankrupt crypto exchange FTX recently transferred $10 million worth of Solana (SOL) tokens to the Ethereum network, a move that may create instability in the cryptocurrency market, as FTX undergoes a bankruptcy review and proposes a structured approach to the sale of its digital assets.
Interest in altcoins may have waned, but Solana remains the most loved altcoin amongst investors, with $700,000 invested in it over the past week and $26 million year-to-date inflows.
The price of bitcoin fell nearly 1% in the past 24 hours to below $25,700, following a surge last week after Grayscale's court victory, while the announcement of extended oil production cuts by Saudi Arabia and Russia could be bearish for bitcoin prices. However, Solana's SOL token saw a 3.7% increase after Visa's announcement of expanding its stablecoin settlement capabilities with Circle's USDC stablecoin to the Solana blockchain.
Visa's announcement of expanding its stablecoin capabilities to the Solana blockchain caused a 5% increase in the value of Solana's sol token, which aims to rival Ethereum due to its speed and cost effectiveness.
The price of Solana (SOL) has dropped over 6% in the last 24 hours due to concerns that bankrupt crypto exchange FTX may sell off significant amounts of SOL and other Solana-based tokens, totaling $128 million, on the market.
Cryptocurrency asset outflows reached $59.3 million in a four-week streak, driven by regulatory concerns and a decline in trading volumes, with Bitcoin seeing the most outflows while Solana experienced outflows after a nine-week run of inflows.
Bitcoin's rise may trigger leverage liquidations and price increases for alternative cryptocurrencies like solana's SOL, as traders who were shorting those tokens risk being forced to cover their positions.
