As Bitcoin Exceeds $38,000, Solana Leads the Gains in Layer-1 Tokens

News Desk5
1 Min Read

Bitcoin broke above the $38,000 level in Asian morning hours on Wednesday as hopes around a spot exchange-traded fund (ETF) approval were revived earlier this week, and traditional market watchers expected rate cuts.

Solana’s SOL tokens led gains among layer-1, or base, blockchains, jumping some 8% in the past 24 hours to reverse losses from the past week. Avalanche’s AVAX bumped 6.6%, while Cardano’s ADA and Tron’s TRX rose over 5%.

The Cryptopurity Market Index (CMI), a broad-based index that tracks the crypto market, rose over 2.5%.

Bitcoin momentum started to rise late Tuesday as Federal Reserve governor Chris Waller said recent data suggested a slowdown in the economy and continuing moderation in inflation showed current policies were in the “right spot.”

Waller also said that if inflation were to continue to decline, there’s a good argument to be made for rate cuts within a few months.

Interest rate decisions have the tendency to move markets. Higher rates usually mean risk assets such as stocks and cryptocurrencies take a hit as investors could take profits and invest in bonds.

Share This Article
Leave a comment