The cryptocurrency market has been facing bearish pressure since the beginning of the year. According to CoinMarketCap, the total crypto market capitalization has dropped by 10% in one week to $3.18 trillion. The downtrend has caused a negative impact on flows in and out of the cryptocurrency market. According to analyst Ali Charts on X, capital inflows in the market have declined from $134 billion to $58 billion in just one month. (Source: X) This decline points towards reduced investment activity. Moreover, traders withdrawing their money from the market could indicate market uncertainty and a lack of conviction about the short-term price performance. One of the factors that could be behind the drop amid bullish catalysts such as the upcoming inauguration of Donald Trump is the reduced demand for risk assets such as crypto and stocks. Dollar Strength Reduces Demand for Crypto Trump’s election win not only boded well for cryptocurrency prices but also for the US dollar. According to MarketWatch , the US Dollar Index (DXY) has increased to 110, marking its highest level since November 2022. The US dollar is inversely correlated with Bitcoin in that when the DXY is rising, crypto prices decline. Moreover, a stronger dollar tends to reduce the demand for assets like crypto as investors become risk averse. The weakened demand is also evident in the spot crypto exchange-traded fund (ETF) market. This is after spot Bitcoin ETFs recorded $732M in outflows in the last two consecutive trading days, per SoSoValue data. Spot Ethereum ETFs also saw $185M outflows last week. If institutions and retail traders continue to show reduced interest in Bitcoin and altcoins in preference for the US dollar, it could result in bearish pressure. Fear and Greed Index Shows Market is Still in Bull Territory Despite crypto prices retracing across the broader market, the Fear and Greed Index, a metric that measures the sentiment of traders, still shows a bullish sentiment. At press time, this index stood at 61, which shows a state of “greed” and that demand from investors remained significantly high. However, the level of demand from new buyers has dropped significantly, given that the index stood at 78 a week ago. Bitcoin traded at $91,690 at press time after a 10% drop in seven days, while the largest altcoin, Ethereum (ETH), traded at $3,108 after registering a 14% drop in one week.
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
4 of the Best Altcoins That Might Skyrocket if Solana ETFs Launch in 2025
As the crypto market buzzes with growing institutional interest ($DOGE’s price has more than doubled since the elections, for instance), the potential launch of Solana ETFs in 2025 may open doors for massive growth for several altcoins. Solana has emerged as a fierce rival of Ethereum thanks to its low transaction fees and high scalability. Investors are lining up to buy Solana, which has resulted in a price increase of over 300% in the last two months alone. It’s currently priced at $186.52. And this momentum should be amplified by the launch of ETFs. For fellow crypto traders and investors, we’ve shortlisted four of the best altcoins that are all set to benefit from Solana’s potential ETF launch. 1. Solaxy ($SOLX) – Solana’s First-Ever Layer-2 Solution Solaxy ($SOLX) is designed to enhance liquidity, speed, and multi-chain interoperability on Solana. It benefits from the high-performance infrastructure of Solana, supporting seamless liquidity pools and fast swaps. This altcoin has raised an impressive $10M during presale, which reflects the strong confidence of investors in its vision. Currently priced at $0.0016, it offers a significant upside potential. As Solana continues to expand into institutional finance through its upcoming ETF, $SOLX is likely to ride this growth trajectory. Solana can process thousands of transactions per second with minimal fees. This makes it a preferred choice for DeFi and enterprise applications. With $SOLX being integrated into this ecosystem, it’s positioned as a key player for investors looking for exposure to Solana. 2. Wall Street Pepe ($WEPE) – Empowers Retail Traders with Unique Market Insights Wall Street Pepe ($WEPE) has captured the attention of crypto enthusiasts and influencers alike with its serious ambitions. This altcoin brings a fresh twist with its community-driven ecosystem that engages users with innovative features. The project powers several decentralized applications (dApps) and rewards users when they engage with its ecosystem. Furthermore, $WEPE investors will get unique market insights often reserved for whale investors. Simply put, it aims to even the playing field and empower the average Joe. $WEPE also boasts gamified staking options. As a holder, you can earn passive income while participating in its vibrant community activities. The presale has raised over $47M, which demonstrates the strong interest in its playful approach. As Solana ETFs move closer to approval, $WEPE is poised to gain further traction. It’s currently available at just $0.00036647, with prices set to increase in the next couple of days. 3. Bonk ($BONK) – Proven Performer to Get a Boost The first dog-themed coin on the Solana blockchain, $BONK, is revolutionizing the concept of community-driven cryptocurrencies. This altcoin was launched in December 2022 and carries the ethos ‘for the people, by the people.’ 50% of $BONK’s total supply has been airdropped to the Solana community. This strategic move significantly enhanced its visibility and led to a 34% rise in $SOL’s price in just 48 hours. $BONK was designed to bring back liquidity to the Solana-based DEXs. However, its broader mission is to create a full-fledged ecosystem where all participants have an equitable chance to contribute and benefit. The uniqueness of the project lies in its airdrop mechanism, which significantly rewarded collectors, developers, and artists across the Solana network. This initiative has increased trading activity, with Orca, Solana’s DEX, reporting a trading volume of $20M. $BONK had grown over 2,000% within a week by January 2023, which made it the top-performing crypto asset in terms of percentage return that year. Currently, the tokens have over 350 on-chain integrations from various verticals. As the launch date of Solana ETFs approaches, $BONK will ride the momentum, emerging as a key force in the Solana ecosystem. 4. Pudgy Penguins ($PENGU) – One of the Most Popular Meme Coins Pudgy Penguins is a meme coin inspired by the popular NFT project that shares the same name. Since its launch in late 2024, it has been gaining traction. This altcoin combines the playful essence of its NFT with Solana’s efficient blockchain infrastructure. Pudgy Penguins has established itself as a favorite among community-driven projects. Currently, it has a market cap of $2.06B , which reflects $PENGU’s rapid surge in popularity . Analysts also consider its influencer partnerships and the growing trend of Solana-based meme coins to be key drivers of this demand. $PENGU’s future largely hinges on market sentiment and how it engages with the Solana ecosystem. The launch of the Solana ETF is likely to further drive the momentum of this promising meme coin. Verdict – Where There’s Reward, There’s Risk While these 4 of the best altcoins are undoubtedly poised for massive returns, it’s always advisable to do your own research before investing your money into them or any other asset class for that matter. After all, the crypto market has its fair share of ups and downs, and you must be prepared for it all. Also, remember that none of the above is financial advice, so you need to DYOR before investing in cryptocurrencies. ZyCrypto
Bitcoin Price Consolidation May Be Nearing an End with Potential for Significant Rebound
Bitcoin’s recent price consolidation may be reaching a critical turning point, with analysts predicting a potential breakout ahead. Recent market behavior suggests heightened activity among traders, particularly in the options ZyCrypto