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Solana (SOL) briefly reached $159 yesterday after reports emerged that the first SOL staking ETF will launch in the US on July 2. While Solana price has since retreated to trade at $151 today, July 1, with a slight 0.8% gain, the ETF news has sparked increased market interest. Trading volumes are up by more
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The Australian Dollar (AUD) has shown signs of stabilization after a month of decline, with AUD/USD trading within a 0.6535…
Solana whales are showing no signs of slowing down after two entities waded in to scoop significant amounts of SOL tokens. SOL Strategies and DeFi Dev Corp have increased the size of their holdings by a combined 200,000 SOL.
Canadian investment firm SOL Strategies has announced the purchase of 122,524 SOL to continue its accumulation spree of the Solana native token. According to a press release, Sol Strategies acquired its latest tranche at an average price of $148.96 per token, splurging $18.2 million on the purchase.
The latest purchase follows the unveiling of a $500 million convertible note to buy SOL at the end of April. Per the company statement, the purchase is the first tranche flowing from the $500 million raise, with the company hinting at a future accumulation.
“With the closing of our initial $20 million tranche for the ATW facility, we’re executing exactly as promised – strategically acquiring SOL to expnd our validator operations and ecosystem position,” said SOL Strategies CEO Leah Wald.
The company CEO disclosed that the purchases will bring it one step closer to the goal of investing in Solana-based technology. Consequently, SOL Strategies’ total holdings stand at 391,782 SOL, valued at $55.6 million at current prices.
Publicly traded firm DeFi Dev Corp is matching the appetite of SOL Strategies to acquire 82,404 SOL. The company announced the purchase via a press release, splurging $11.2 million on the purchase.
The purchase brings DeFi Dev Corp’s total holdings to 400,091 SOL with a valuation of around $58.5 million. However, DeFi Dev Corp says the newly acquired tokens will be staked on its validators, earning native yield for investors.
As a result of the company’s latest purchase, speculation of a growing SOL arms race with SOL Strategies is brewing in cryptocurrency circles.
Data from CoinMarketCap reveals a bland reaction to the sizable purchases by SOL Strategies and DeFi Dev Corp. Over the last day, Solana price has shed nearly 2% to trade at $143, but monthly gains currently exceed 24%.
SOL price is holding up well above the $140 mark, riding the wave of Solana-based PumpFun flipping Ethereum in fees. However, Solana price has shown flashes of a potential rally, given a spike in daily trading volume by 18% to settle at $2.41 billion.
A Coingape article predicts Solana’s price to reach $750, but a low-hanging fruit is a short-term rally to clinch $300.
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The cryptocurrency market is monitoring the upcoming Federal Open Market Committee (FOMC) meeting, which is set to conclude on March 19, 2025. Investors are awaiting the Federal Reserve’s stance on interest rates, as any adjustments could influence the crypto market.
The Federal Reserve is widely expected to maintain the current interest rate range between 4.25% and 4.5% after its March meeting. Despite ongoing speculation about potential cuts, Federal Reserve Chair Jerome Powell has consistently indicated caution in adjusting rates. Powell points to inflation concerns and global economic uncertainties.
Some economists suggest that rate cuts may not occur until later in the year. Consequently, Fed rate cuts are projected around June 2025, as inflation remains a focal point of monetary decisions. Powell’s post-meeting press conference at 2:30 p.m. ET is expected to provide further insight into the Fed’s future approach.
With the Federal Reserve’s FOMC meeting expected to conclude tomorrow, crypto investors remain on edge about interest rate decisions. While market analysts predict that rates will stay unchanged, uncertainty surrounding inflation, trade policies, and economic growth continues to fuel volatility.
Bitcoin (BTC) has been fluctuating around $85K as the crypto market is in a volatile phase before the FOMC announcement. Many traders believe a crypto market crash could follow if the Fed signals a prolonged period of high interest rates.
Specifically, higher interest rates usually benefit more traditional types of investments such as bonds and savings accounts. As a result of this, capital is leaked from riskier assets such as cryptocurrencies. Conversely, rate cuts can boost liquidity and drive more money into speculative assets, including Bitcoin and altcoins.
But the Fed has stayed hawkish for a while, keeping rates higher, in order to curb inflation. Under these conditions, the crypto market is struggling, and a lot of investors are expecting relief from rate cuts in 2025. While inflation seems to be cooling, with the U.S CPI falling from 3.1% to 2.8%, this may not be enough to stop the Fed easing its policy.
Incase the Federal Reserve signals that rate cuts are approaching, a surge in altcoin prices could follow. This is because increased liquidity would likely encourage higher risk appetite among traders.
However, if the central bank keeps rates high for an extended period, crypto markets may decline. Tightening financial conditions could drive further losses.
With investors awaiting Powell’s remarks, the next 24 hours could determine whether the market stabilizes or experiences a crypto market crash.
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