Solana Outperforms as Bitcoin Surpasses $38K: Leading Layer-1 Token Gains

• Bitcoin Surpasses $38,000 Amid Expectations of Exchange-Traded Fund Approval
• Performance of Other Cryptocurrencies
• Insights from The CoinDesk Market Index (CMI)
• Mounting Bitcoin Momentum
• Standard Chartered Maintains Optimistic Outlook on Bitcoin

Bitcoin Surpasses $38,000 Amid Expectations of Exchange-Traded Fund Approval

Bitcoin$42,260 -0.64% has surged beyond the $38,000 mark during Asian morning hours on Wednesday, bolstered by renewed optimism around the approval of a spot exchange-traded fund (ETF). Traditional market analysts also anticipate rate cuts, further fueling the crypto rally.

Performance of Other Cryptocurrencies

Solana$104 5.03%'s SOL tokens posted the biggest gains among layer-1, or base, blockchains, witnessing an 8% jump within the last 24 hours. This effectively reversed the losses incurred in the previous week. Other cryptocurrencies such as Avalanche's AVAX saw a 6.6% increase, while both Cardano's ADA and Tron's TRX experienced an upward trend of over 5%.

Insights from The CoinDesk Market Index (CMI)

The CoinDesk Market Index (CMI), an index offering a comprehensive view of the crypto market, recorded a rise of over 2.5% as well.

Mounting Bitcoin Momentum

The momentum behind Bitcoin began to escalate late Tuesday. Chris Waller, a governor of the Federal Reserve, stated that recent data indicates a slowdown in economic activity and a sustained moderation in inflation, implying that current policies were appropriately positioned. Furthermore, Waller suggested that if inflation continues to fall, there would be a strong case for implementing rate cuts in a few months' time.

Interest rate decisions often affect market dynamics. Higher rates typically have a negative impact on risk assets including stocks and cryptocurrencies, as investors might choose to realize profits and redirect their investments into bonds.

Standard Chartered Maintains Optimistic Outlook on Bitcoin

In other news, the global bank Standard Chartered has reaffirmed its April prediction that Bitcoin (BTC) would hit $100,000 by the end of 2024. The bank's analysts believe that the anticipated approvals for several bitcoin spot ETFs could materialize sooner than expected, triggering a potential uptrend.

Edited by Jonathan Stoker