Why Is Bitcoin, Ethereum & Solana Price Up For Today?

Why Is Bitcoin, Ethereum & Solana Price Up For Today?

2022-02-05 | Daniel Smith

Why Is Bitcoin, Ethereum & Solana Price Up For Today?

Bitcoin (BTC), Ethereum (ETH), as well as Solana (SOL) all reached new highs in early afternoon trade today. These three leading tokens have gained 9.8 percent, 12.8 percent, and 11.6 percent, correspondingly, during the previous 24 hours as of 1:30 p.m. ET. After positive employment data this morning, all three originally fell. Nevertheless, the cryptocurrency market has subsequently pushed stocks higher in early afternoon trade, soaring on investor appetite notwithstanding increased odds of rate rises and much more aggressive monetary policy. In terms of token-specific information, Bitcoin received a boost today from a statement revealing that Bitcoin miner Marathon Digital raised its January production by over 800% and currently has approximately 8,600 BTC on its balance sheet. Solana's introduction of Solana Pay, as well as the listing of two Solana-inspired tokens on Coinbase previously this week, remain to generate significant tailwinds for this asset. And Ethereum is gaining popularity as a result of fresh data demonstrating the rise of non-fungible tokens (NFTs). Ethereum is the primary blockchain network on which the majority of NFTs operate.

Well, what is it?

As we've witnessed in previous weeks, the cryptocurrency market has a strong link with risk equities, especially those traded on the Nasdaq. As is customary in the cryptocurrency market, today's extraordinary changes underscore the extraordinarily unstable nature of digital currencies. Cryptocurrency investors in Bitcoin, Ethereum, as well as Solana, may anticipate more subdued price activity than in other, lesser altcoins. Nevertheless, the price activity we're witnessing across mega-cap firms, with Amazon soaring up to double digits today after results, suggests that investors are exaggerating and underreacting to information in significant ways. Ultimately, it appears like all three coins have triggers that investors have been waiting to price in for a considerable time. Due to the prevailing macroeconomic context, the severely pessimistic attitude has overtaken these triggers. As seen by these actions, investors seem to be adopting a risk-on approach to higher-risk assets such as cryptocurrency.

So, what presently?

It's difficult to determine if double-digit percentage rises would be viable in the short run. Certainly, cryptos as well as other risk assets are currently facing a substantial amount of headwinds. Nevertheless, the desire to purchase the drop does not appear to have subsided. Investors searching for top-tier cryptos to include in their portfolios are concentrating their attention on these leading tokens as possible long-term victors.

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