Former BitMEX CEO Arthur Hayes has expressed bullish confidence in Solana (SOL), emphasizing its potential for recovery and growth despite challenges post-FTX collapse. Despite FTX’s downfall and legal issues involving its founder, Sam Bankman-Fried, a notable supporter of Solana, Hayes remains optimistic about the cryptocurrency’s bright future.
Time To Switch To Solana?
Known for accurate market predictions, Hayes detailed his investment strategy in a recent essay, hinting at divesting some tokens, including Solana, in case of a Bitcoin downturn. However, he plans to invest in Solana and other altcoins if Bitcoin drops below $35,000, showcasing his belief in Solana’s potential.
However, Solana’s market performance stayed volatile, making sudden price swings. After a surge in late 2023, followed by a correction in early 2024, the crypto has maintained a decent price level, hinting investor confidence in its stability. Hayes’s past comments have helped Solana surge, indicating a bullish surge in the coming days.
Macro Factors at Play
Despite SOL’s 9.8% price drop and inability to break $104, its network fundamentals remain strong. Since Jan. 31, broader crypto market pressure, triggered by the Fed’s decision to hold interest rates, has exacerbated concerns about regional bank problems. NYCB’s 42% share price slump raised financial and bigger crypto crisis concerns. Hayes expects a negative impact on Bitcoin followed by favorable outcomes for altcoins if the Fed issues a no-rate cut policy.
Signs of Recovery and Growth
A notable shift of 150,000 SOL from a Bybit exchange wallet to an unknown address suggests bullish sentiments among large-scale investors, marking long-term confidence in the Solana project. Hayes’ view aligns with this, indicating a gradual increase in confidence in the asset’s potential. Despite recent challenges, Solana’s market has shown signs of recovery, trading at $97.86 with a market cap of $42.67 billion, reflecting resilience and potential for growth.
