On Tuesday, May 6, 2025, Bitcoin (BTC) experienced a slight decline, with its price dropping below $94,000, affected by several economic and technical factors.
📉 Reasons for Bitcoin's Decline
• US Federal Reserve Predictions: Investors are awaiting the Federal Reserve's decision on interest rates. Although forecasts suggest rates will remain unchanged, the market is looking for signals from Fed Chair Jerome Powell regarding future policies, contributing to a sense of anticipation and stagnation in the markets.
• Gold as a Safe Haven: Gold has shown strong performance recently, attracting some investors away from digital assets like Bitcoin, especially amid economic volatility.
• Technical Signals: Technical analyses indicate that Bitcoin is undergoing a correction after previous gains, with signs of a potential further decline in the short term.
📊 Market Performance and Other Coins
• Ethereum (ETH): The price of Ethereum decreased by approximately 2%, falling below the $1,800 level.
• XRP: The XRP coin recorded a decrease of 2.7%, amid fears of a decline to critical support levels.
🏦 Organizational and Institutional Developments
• UK Rejects National Bitcoin Reserve: The UK government announced its rejection of the idea of creating a national Bitcoin reserve, citing its unwillingness to adopt the digital currency as an official reserve asset.
• Florida's Withdrawal from Bitcoin Reserve Bills: Florida has withdrawn bills aimed at investing public funds in Bitcoin, indicating a retreat from the trend of adopting digital assets at the state level.
• Decline in Bitcoin Reserves on KuCoin: The KuCoin platform witnessed a 77% decrease in Bitcoin reserves after implementing KYC requirements, leading to the exit of users concerned about privacy.
🔮 Future Predictions
Despite the current decline, long-term forecasts for Bitcoin remain positive. Some analyses suggest the price could reach $250,000 if the US Federal Reserve shifts to quantitative easing policies. However, many analysts expect the price to range between $100,000 and $110,000 during 2025, based on current data.
Solana (SOL) has seen notable developments on both institutional and technical fronts, reflecting increasing interest from institutional investors and mixed technical predictions.
💰 Significant Institutional Investments in Solana
SOL Strategies: Announced the purchase of $18 million worth of Solana coins as part of a $500 million bond deal, aimed at expanding its footprint in the Solana network and strengthening its cryptocurrency holdings.
DeFi Development Corp: Purchased an additional 82,404 Solana coins worth $11.2 million, raising its total holdings to 400,091 coins, valued at approximately $58.5 million.
📈 Price Performance and Technical Analysis
Current price: Solana is currently priced between $145 and $147, with a slight decrease of 1% over the past 24 hours.
Technical Analysis: Analyses indicate that Solana faces resistance at the $155 level. If it surpasses this level, the price may rise to $175 or even $190.
Downside Risks: There are concerns of a potential liquidation of $45 million in long positions if the price drops below $143, which could lead to a price fall to $134.
🔧 Network Activity and Ecosystem Development
Network Activity: The Solana network has seen increased activity, with over 1.2 million new SPL tokens created in April, reflecting ongoing momentum in ecosystem development.
Platform Revenues: Axiom Exchange has surpassed Pump.fun in weekly revenues on the Solana network, achieving $13.34 million, indicating growth in meme coin trading activity.
🔮 Future Predictions
Predictions for Solana's price range from optimism to caution. Some analysts expect the price to reach $160 in the near term, while others warn of a potential drop to $134 if current support levels are broken.