Bitcoin enters a correction period, Solana ecology sucks the market

Original title: "Bitcoin enters a correction period, Solana ecology sucks the market"

Original author: Mary Liu, BitpushNews

The rally in the crypto market 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 U.S. dollars, and recovered to above 3,500 U.S. dollars as of the closing hours of U.S. stocks, with a 24-hour drop of nearly 3%.

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 Vampire 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 in November 2021 Points $259.96.

Cryptocurrency exchange Binance launched BOME perpetual futures on March 16, and BOME has surged 82% since its listing on March 10.

Santiment stated in its market report: “BOME and SOL are the two most popular assets on X, Reddit, Telegram and 4Chan due to their recent Outperformed the market. People still believe Solana and its meme coins are viable alternatives to Ethereum ecosystem projects."

According to Santiment, the number of mentions of "SOL" on social media has rose to 322 times. Meanwhile, Google Trends (which measures interest in trending topics) at one point showed the global search query "solana" to have a value of 100. A score of 100 represents the maximum number of searches for a term observed in a given time frame. This shows that more and more people are browsing the Internet for information about solana.

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 Solana-based decentralized exchanges this month has reached $30 billion, 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 halving.

Crypto trader and independent analyst Rekt Capital posting on During the annual halving cycle, BTC fell by 38% and 20%.

Yield App Chief Investment Official Lucas Kiely 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 turmoil, and it is also a reminder to buckle up as we enter the pre-halving ‘danger zone’ Clear signal. In the days before the halving, BTC plunged 40% in 2016 and 20% in 2020. We are just preparing for the price trend before the halving in this cycle." Kiely predicted that Bitcoin could see 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 would reach $250,000 in 2025. high, then stabilized around $200,000.

Standard Chartered Bank has become one of the more traditional banks friendly to Bitcoin and has 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 Chartered’s analysis is based on comparisons with gold prices following 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 Bank said in another report that the spot Ethereum ETF is expected to be approved on May 23, which will lead to capital inflows of up to $45 billion in the first 12 months. By the end of 2024, Ethereum will The price will climb to $8,000 per square meter.

The report stated: “By 2025, we expect the ETH to BTC price ratio to return to the 7% level seen for much of 2021-22. Given our estimate of BTC’s price by the end of 2025 The price level is $200,000, which means an ETH price of $14,000."

The pre-halving pullback coincides with the U.S. Federal Open Market Committee (FOMC) meeting. Ended on March 20, after last week's inflation data exceeded expectations, investors focused on the Federal Reserve's possible signal of interest rate cuts.

Goldman Sachs Group Inc. economists have changed their forecasts for the Fed to cut interest rates, predicting three rate cuts this year instead of the four previously forecast, and swap markets have also revised downwards. Betting on the Fed's interest rate cut, the probability of the Fed cutting interest rates by 25 basis points in June is currently 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. Influence.

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