There was a decrease in Altcoins, especially in Solana. In fact, many Altcoin dual -digit depreciation has experienced in recent weeks. On the other hand, Bonk, Pepe and Raydium prices recorded big decreases and entered the bear market. So, why did these Altcoins fell so hard and what are they expected in the coming process?
Weakness in Bitcoin affects Altcoins
Solana, approached $ 300 in January, fell to $ 168, and investors suffered great losses. Bonk decreased by 75 %of its summit in 2023 and fell to $ 0.00001528. Pepe Coin went down from $ 0.00002828 to $ 0.0000092, while Raydium (rail) lost more than 40 %.
The main reason for these harsh decreases is shown as a withdrawal in Bitcoin. Bitcoin price reached 109.200 dollars in January, while currently trading around $ 95,000. Usually when Bitcoin declines, Altcoins react much more harshly.
Trust Problems in Solana Ecosystem
Solana has become one of the blocks in which breast coin projects are most recently released. Projects such as Pump.fun have enabled thousands of new tokens to be created on the platform.
However, many new token has victimized investors. Projects such as Official Trump, Melania and Libra experienced great collapses after rapidly gaining value. This increased concerns that Solana could be a platform that is referred to by fraud projects.
FED policies and economic pressures
The US Federal Bank (FED) kept its interest rates constant at 4.50 %at the first meeting of the year. Authorities, high inflation due to interest reduction will not behave in a hurry, he said.
In January, inflation data came above expectations in January. The consumer price index (CPI) rose to 3.0 %, while the core inflation remained over 3 %. This led investors to get away from risky assets.
What will be the next process for Altcoins?
Bitcoin’s attachment to $ 95,000 creates a hope of recovery in the Altcoin market. However, confidence problems and FED policies in the Solana ecosystem cause the Altcoin market to remain uncertainty.
Investors should carefully monitor Bitcoin price movements. If the BTC is recovered, a rise may also be seen in Altcoins. However, the volatility seems to remain high throughout the market.
