Solana Records 5% Gain Despite Concerning Developments in Crypto Space
Solana (SOL) has experienced a 5% increase in the past 24 hours, despite some worrying developments in the crypto industry. The United States recently published its Consumer Price Index (CPI) data for August, revealing that inflation rose to 3.7%, surpassing analysts’ predictions. Additionally, the bankrupt FTX exchange has gained court approval to liquidate its $3.4 billion worth of crypto holdings to offset its debt.
The Market Remains Resilient
Typically, these developments would cause selling pressure on crypto assets. However, the market has largely remained steady with slight gains. Surprisingly, Solana has even initiated a rally, attracting significant investor attention.
Analyst Explains Why Crypto Market Is Not Reacting as Expected
Crypto analyst Michaël van de Poppe offers possible reasons for the market’s unexpected behavior. He notes that most of FTX’s crypto holdings consist of staked Solana tokens valued at $1.2 billion. These tokens cannot be liquidated, and only 7 million SOL is available for sale by FTX. According to Van de Poppe, this limited supply may lead to a “sell the rumor, buy the news” scenario.
FTX gets approval to sell $3.4B in #Crypto assets & CPI data comes in worse than expected
Markets aren't falling down that much, and not much should be happening from it.
The Solana, which corresponds to $1.2 billion of the assets of FTX, is mostly staked and can't be sold.SOL Price Prediction: Solana Takes Hit and Could Dive To $15
Therefore, the analyst postulates that the US Federal Reserve would likely not be introducing any interest rate hike. This is because the Fed is known to focus more on core CPI data, which provides a long-term outlook on the nation’s inflation rate.
Hot Take: Solana’s Resilience Reflects Market Confidence
Despite concerning developments in the crypto space, Solana has managed to maintain its positive momentum with a 5% gain. This resilience suggests that investors have confidence in Solana’s potential and are not deterred by factors such as inflation or exchange liquidation. Analyst Michaël van de Poppe’s explanation sheds light on why the market has not reacted as expected. The limited supply of liquidatable Solana tokens may contribute to a “sell the rumor, buy the news” scenario. Overall, Solana’s performance reflects the overall resilience and optimism in the crypto market.
By
By
By
