Bitcoin
$100,250.91
crossing the $100,000 mark is a huge moment—not just for Bitcoin but for the entire cryptocurrency industry. It is more than just a big number, as it becomes a symbol of how far crypto has come and how much it is shaping the future of finance.
When Bitcoin sets new achievements, it often sends ripples through the market, and altcoins like Solana
$221.82
are no exception.
Solana, known for its lightning-fast transactions and low fees, has built a solid reputation as one of the top-performing blockchains. Its ecosystem is booming with decentralized apps, non-fungible tokens (NFTs), and developer activity.
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However, with Bitcoin hitting such a massive milestone, what does this mean for Solana? Could Bitcoin’s big win push SOL’s price higher? Bitcoin’s rise could signal big changes for the rest of the market, and Solana’s trajectories might just be tied to this historic moment.
The Price Correlations Between Bitcoin and Altcoins
Bitcoin’s price trends often influence the direction of the entire cryptocurrency market, with altcoins like Solana frequently following its lead.
A particularly exciting period for altcoin investors is “altseason”, when altcoins begin to outperform Bitcoin. This usually occurs after Bitcoin experiences a big rally, prompting investors to redirect their funds into altcoins for higher returns.
Tools like the Altcoin Season Index (ASI) help investors identify whether the market is in an altseason. It analyzes the percentage of top altcoins outperforming Bitcoin during a specific timeframe.
For instance, a reading exceeding 75 indicates that 75% of altcoins have outperformed Bitcoin in the past 90 days, signaling an altcoin season. Conversely, a reading below 25 suggests a Bitcoin season where BTC outperforms the majority of altcoins.
With Bitcoin breaking past $100,000, the market seems to be shifting toward altcoins again. Data shows many top altcoins have outperformed Bitcoin over the last 90 days, nearing the threshold for altseason.
Solana’s Market Performance During Bitcoin’s $100K Milestone
Before Bitcoin hit the $100,000 milestone, Solana showed impressive growth. On November 22, SOL reached a new all-time high of $260, surpassing its previous record set four years ago.
Part of this rally came from the buzz around Solana’s decentralized exchanges (DEXs), which a $109.8 billion in trading volume that month—nearly twice as much as Ethereum’s $55 billion. For instance, one of Solana’s DEXs, Raydium
$481.19M
, generated $11.3 million in fees.
Additionally, the Solana Program Library (SPL), particularly memecoins, played a role in this price increase. The memecoin market saw an increase, with its market capitalization reaching $20.5 billion—a rise of 8.8% within 24 hours.
As Bitcoin approached and eventually crossed the $100,000 mark, excitement spread across the crypto industry. But for Solana, things started to cool down a bit.
After hitting its high, SOL’s price decreased to around $240—a 9% drop from its peak. On-chain data showed investors had unstaked about 2.2 million SOL, worth roughly $528 million, over a week. This often signals people cashing out their profits, which can cool off any upward momentum.
Once Bitcoin crossed the $100,000 mark, the market experienced increased volatility. Even though SOL had a good rally, it struggled to maintain momentum and ran into resistance at $220, $233, and $250.
Additionally, technical signals like the Bull Bear Power (BBP) pointed to weaker buying pressure, suggesting that the sellers were starting to take over.
Factors Contributing to Solana’s Price Movements
Solana has been attracting attention recently, and for good reason. Its price movements are tied to technological developments and political events.
One big leap for Solana is the adoption of Zero-Knowledge (ZK) Compression technology. This helps reduce storage and transaction costs by using advanced cryptographic techniques, making the network faster and more efficient to use.
The ecosystem is also thriving, with more people using the network daily and a big jump in decentralized finance (DeFi) activity.
Partnerships with major players like Google Cloud, Amazon, and Visa have brought the platform even more attention and resources, helping it expand its reach and capabilities.
Recent political events, particularly President Donald Trump’s re-election, also contributed to Solana’s price changes. Following the election, Solana reached $214 per coin, marking its highest price since December 2021.
Future Prospects for SOL
As of December 13, 2024, SOL is trading at $226, with a daily trading volume of $2.38 billion.
Recently, SOL saw a dip of 15%, dropping to $203 during a crypto market downturn. However, it has bounced back by 8.23%, climbing to $220.
This recovery seems to be supported by growing optimism, as traders have invested $237 million in leveraged long positions, showing confidence in the coin’s potential to continue climbing.
The technical outlook is a bit mixed. Some indicators suggest a “Buy” signal for daily and weekly trends. On the other hand, another analysis gives a more cautious “Neutral” rating, with moving averages leaning toward “Sell”, while technical indicators suggest a “Buy” signal.
Analysts expect Solana’s price to grow steadily in the near future. By the end of 2024, it is predicted that SOL could average around $237, possibly reaching as high as $247.
Adding to the SOL’s price prediction, an X user, @TheMoonCarl, stated, “SOL seems to be breaking out to the upside! The target is $290.”
Moving into 2025, the prediction remains positive, with projections suggesting average prices of about $255 and potential peaks near $270.
Looking further ahead, Solana’s growth seems more promising. By 2026, estimates put its price somewhere between $271 and $332, averaging close to $281.
Jumping to 2028, SOL could trade between $550 and $681, with an average of around $570.
Final Thoughts
Bitcoin hitting $100,000 is a big event for the crypto market, and it is no surprise that altcoins like Solana feel the impact. Solana had a strong rally leading up to this milestone, but its ups and downs show how unpredictable the market can be.
Still, Solana’s future looks bright. With its innovative tech and big-name partnerships, it is building a strong foundation for long-term growth. While short-term price swings are part of the game, Solana’s network’s growing interest shows its potential.
Recently, Ethereum
$3,896.40
, the second-largest cryptocurrency, surged to $4,071, getting close to its yearly high of $4,090 in March 2024. Could this surge be connected to Bitcoin’s big moment? Read the full story.
