In the latest market movements, Bitcoin has broken the $38,000 barrier, instigating a surge in Layer-1 tokens, with Solana’s SOL token leading the way.
Bitcoin’s price crossed the $38,000 mark during Wednesday’s Asian morning trade. The surge is attributed to renewed hope for a spot exchange-traded fund (ETF) approval and expectations for potential rate cuts in traditional markets.
SOL tokens of the Solana blockchain have managed to record the highest gains among base blockchains, marking an 8% increase in the last 24 hours. This surge has managed to balance out the losses recorded in the previous week. Other tokens such as Avalanche’s AVAX saw a 6.6% rise, while Cardano’s ADA and Tron’s TRX both increased over 5%.
The CoinDesk Market Index (CMI), a tool providing a comprehensive view of the crypto market, also rose over 2.5%. Bitcoin’s upward shift gained traction late Tuesday, following comments by Federal Reserve Governor Chris Waller. He indicated that the current economic conditions and ongoing inflation moderation suggest that current policies are suitable.
Waller also hinted at potential rate cuts in the coming months if inflation continues to decrease. Decisions regarding interest rates typically influence markets, with higher rates potentially resulting in a decrease in risk assets like stocks and cryptocurrencies.
Meanwhile, Standard Chartered has reiterated its April forecast, stating that Bitcoin could reach $100,000 by the end of 2024. Analysts believe that the expected approvals of several spot Bitcoin ETFs could act as catalysts for a market uptrend.