While Bitcoin prices fluctuated amid inflation concerns, the cryptocurrency market remained stable. Solana’s smart contract blockchain token SOL surged more than 10% amid the chaos, demonstrating its resilience in the face of inflationary pressures.
The price of Bitcoin is still hovering above $30,000. According to CoinDesk, U.S. Federal Reserve Chairman Powell said at an event on financial stability in Madrid that monetary constraints take time to take effect. In addition, the number of applications for unemployment benefits has fallen and productivity has risen, but digital assets have only risen slightly.
In immediate news, first-quarter U.S. gross product was revised upward to 2%, beating expectations for 1.4% growth. The Labor Department said jobless claims fell by 26,000 in the week ended June 24, the largest drop since October 2021 and below expectations of 265,000.
Bitcoin has not seen much volatility in the face of inflationary pressure
Bitcoin was trading at $30,706, up nearly 2% on the day. Bitcoin prices have been volatile over the past few days, but fell below $30,000 on Wednesday as investors paused to consider SEC approval and inflationary pressures.
Nick Rose Ntertsas, CEO and co-founder of the Ethernity NFT platform, said central bank intervention actually acted as a liquidity boost. Risk assets in particular respond extremely well to these flows, and Bitcoin and digital assets are no exception. Looking forward, he believes that the cryptocurrency market has about half a year of volatility, and then the Bitcoin halving period will begin, "meaning we will enter the race."
Solana is clearly strong
In comparison, Ethereum recently traded at $1,859, up 1.6% in a single day. Other major cryptocurrencies also saw slight gains, but Solana’s smart contract blockchain token SOL recently surged more than 10%. According to CoinDesk, cryptocurrency traders on the Solana blockchain are following the Ethereum “liquid equity token” (LST) craze and using their SOL token derivatives to pursue high profits through an obscure re-leveraging process.
The popularity of this derivative product has led to a boom in decentralized finance (Dex) platforms and asset management systems on the Solana blockchain, attracting more traders and investors.
The success of the Solana blockchain has also attracted the attention of other blockchain platforms, such as Polkadot and Avalanche. They are also pushing their own blockchain technology in the competition to attract more developers and businesses. However, the success of the Solana blockchain also faces some challenges. For example, the transaction speed and efficiency of the blockchain may be affected by scaling and decentralization issues, which may lead to transaction delays and rejections, thereby affecting the reliability and stability of the blockchain.
Although Bitcoin prices fluctuate amid inflation concerns, news of central bank intervention and a drop in unemployment benefit claims could have a positive impact on the cryptocurrency market. At the same time, the success of the Solana blockchain has also brought new opportunities and challenges to the cryptocurrency market. As an investor and trader, you need to pay close attention to market trends and developments.