The prices of Bitcoin (BTC) $BTC and Ethereum (ETH) $ETH continued to fall, causing panic and concern in the market. BTC fell below the important support level of $28,000 in a short period of time, and plummeted 9% to nearly $25,000 at 5:30 in the morning. ETH fell even more, reaching a low of $1,550.

Due to the sharp fluctuations in currency prices, Coinglass data showed that more than 170,000 people were liquidated in the past 24 hours, and the total liquidation amount of the entire network reached 1.02 billion US dollars, of which BTC liquidation ranked first with 480 million US dollars, and ETH liquidation followed closely with 303 million US dollars, setting a record for the largest liquidation in recent times.

As for the reason for the sudden and sharp decline of Bitcoin, some people believe that this is the long-planned shipment behavior of the giant whale, while others believe that it may be related to the hawkish message released by the Federal Reserve earlier this week. The latest meeting minutes released by the Federal Reserve show that most participants believe that inflation risks still exist and that monetary policy may need to be further tightened. However, some participants also said that if interest rates are too high, it may bring risks to the economy, showing that there are differences among officials on this issue. #BTC #ETH #美联储是否加息？

Views on the market

After the Fed announced the minutes of the interest rate meeting, the market was in extreme panic. BTC broke through the important short-term support of $28,500 and $27,500. In fact, this position may become the long-term low point just like $312 and $519. It’s just that BTC will have a 2-3 month bottoming, bottoming, and bottoming process in the near future. Don’t rush to rebound easily, wait for the second retracement and then buy on dips. This decline should be the last decline before the bull market.

Is Solana worth our attention? $SOL

Solana is a relatively stable altcoin that deserves our attention. According to reports, Solana has more than $3 million in liquidity, which makes its position in altcoins relatively stable. In addition, the Solana network has launched a tokenized version of Bitcoin, laying the foundation for future development.

Solana Outperforms Competitors in Altcoin Liquidity

Liquidity refers to how easily an asset can be converted into cash without affecting its market price. The more liquid an asset is, the more efficiently it can be converted into cash. SOL’s high liquidity on Coinbase means that it can be easily traded without causing major price fluctuations. This makes it an attractive investment option. Solana has over $3 million in liquidity. The popular memecoin Dogecoin has just over $2 million in liquidity. On the other hand, XRP and MATIC each have just over $1 million in liquidity. Therefore, SOL is moving forward firmly, leaving its competitors DOGE, XRP, and MATIC behind.

Despite its liquidity advantage, Solana has not been immune to the recent broader market downturn. Crypto markets have been shaken by speculation that the SEC will delay a decision on its Bitcoin ETF application until 2024. SOL is down nearly 13% over the past month. Despite the short-term downturn, Solana's fundamentals remain strong.

Solana Optimism

There are reasons to be optimistic about Solana’s future. The most notable one is the launch of tBTC, a tokenized version of Bitcoin on the Solana network, which will allow Bitcoin holders to redeem the value of their Bitcoin in various DeFi platforms and applications, thereby increasing Solana’s usage.

While Solana experienced multiple network outages in 2022, it appears to have surpassed that problem this year. The network now consistently maintains 100% uptime. The launch of new products and use cases such as tBTC is expected to further support Solana's steady recovery throughout the year.