Good morning Here’s what happens:
Prices: Bank failures play a bigger role in determining Bitcoin price than interest rates.
Takeaways: Mad Lads was a bright spot for Solana NFTs, but transaction volume is now lagging behind. The price of the SOL token has held up.
Bitcoin Rebounds From Post Rate Hike Dip
Bitcoin is slowly recovering after the US Federal Reserve hiked interest rates by 25 basis points (bps). Initially, Bitcoin was down 1% after the rate hike, but has since recovered 1.3% to $29,115. For its part, Ether is up 1.6% to $1,908.
Banrion Capital chief strategist Victoria Bills points to the ongoing banking crisis in the US as another driver of crypto prices, offsetting continued Fed rate hikes.
“As panic and market reactivity mount, perceptions of failure in the banking sector could lead to continued turmoil at regional banks,” Bills said on CoinDesk TV.
“The US banking crisis and the intense shift from US bank deposits to US money market funds are seen by crypto advocates as a vindication of the crypto ecosystem,” the report noted, with analysts arguing that the crisis “exposed the weaknesses of traditional finance The system is vulnerable to bank runs given the bank’s maturity mismatch.”
No doubt all eyes will be on Friday’s US jobs numbers to see how this impacts the crypto price. But there could be another bank failure before that, pushing the price of crypto higher.
Mad Lads was a bright spot for Solana NFTs, but transaction volume is still lagging behind
MadLads’ NFT collection managed to “break the internet” in April with its coveted JPEGs on the blockchain, yet Solana’s weekly NFT volume is in the red compared to Ethereum, which remains well in the green.
Data from CryptoSlam shows that the number of sales on Solana has fallen by 52.7% over the past week, while the number of transactions has fallen by 16%.
Meanwhile, Ethereum’s metrics have risen across the board.
But Solana’s buyer and seller metrics are both in the green as Madlads and other NFTs change hands. Buyers are up 40% over the past week while sellers are up 31%.
Data from Nansen shows that Madlads volume has been slowly but steadily declining over the past month.
Nansen’s data shows that while the Madlads Mint has had more market interest over the last month than any other collection (the only other NFT collection in Solana’s history to outperform it is Okay Bears), that interest is waning.
But this waning interest is nothing out of the ordinary. A similar story can be found elsewhere.
Still, there could be good news for Solana’s investors and stakeholders. Although the wind is blowing out of the sails of the Solana NFT collections, the price of SOL hasn’t moved that much. It is down just 2% in the last month and is currently trading above $22 according to market data.
Some crypto watchers are predicting that Bitcoin’s year-to-date rally could stall if Federal Reserve Chair Jerome Powell refrains from signaling a much-anticipated pause in the tightening cycle today. Victoria Bills, Banrion Capital Management’s Chief Investment Strategist, shared her analysis of the crypto markets. Also, Anatoly Yakovenko, CEO and co-founder of Solana Labs, spoke about the expectations of Solana Labs’ crypto-forward smartphone called “Saga”. Michael Bouhanna, Head of Digital Art and NFTs at Sotheby’s, and Owen Lau, Senior Analyst at Oppenheimer also joined the conversation.
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