Daily Crypto Signals: Bitcoin Holds Above $104K, Solana Faces Headwinds Amid Shifting Market Dynamics
The cryptocurrency market continues to navigate volatility as Bitcoin maintains support above $104,000 despite geopolitical tensions, while
Quick overview
- Bitcoin remains resilient above $104,000 despite geopolitical tensions, indicating strong market support.
- Institutional adoption of cryptocurrencies is accelerating, with public companies committing nearly $850 million to Bitcoin purchases.
- Solana faces challenges with stagnant DApp activity and declining interest in memecoins, leading to a 14% price drop.
- Ethereum's staking rates are low compared to competing DeFi protocols, but its infrastructure continues to support a growing stablecoin market.
The cryptocurrency market continues to navigate volatility as Bitcoin BTC/USD maintains support above $104,000 despite geopolitical tensions, while Solana SOL/USD faces challenges from stagnant DApp activity and waning memecoin enthusiasm. Meanwhile, institutional adoption accelerates with public companies committing nearly $850 million to cryptocurrency purchases, signaling growing corporate confidence in digital assets.
Crypto Market Developments
The crypto market today is in a state of change, with classic safe-haven dynamics competing with new tendencies in institutional adoption. China’s central bank said it will set up an international operations center for its digital yuan in Shanghai. This is a big milestone in the country’s aim to expand its CBDC. China wants a “multipolar” currency system that could compete with the US dollar and euro in global banking. This is why the move was made.
Security issues are still a big problem for the business. For example, Israeli-linked hackers used fake vanity addresses to breach the Iranian exchange Nobitex for $81.7 million. The pro-Israel group “Gonjeshke Darande” says they did the hack, which stole funds from many blockchains. This is just one more security breach that has already cost the sector over $2.1 billion in 2025.
Four widely traded US corporations said they would spend $844 million on bitcoin purchases. DDC Enterprise Ltd is in the lead with $528 million set aside for Bitcoin. Fold Holdings has a $250 million facility for buying more Bitcoin. The trend goes beyond Bitcoin. Eyenovia has set aside $50 million for Hyperliquid’s HYPE token, which shows that institutions are interested in other cryptocurrencies.
Bitcoin Holds Above $104,000
The price of Bitcoin is still quite strong, staying above the important $104,000 support level even as tensions in the Middle East are rising. The cryptocurrency has successfully defended the $103,600 level, which is the same as its previous all-time high. This makes this area a key battleground for the direction of the market.
On-chain indicators point to Bitcoin’s market structure being strong. The “ancient” Bitcoin supply, which is coins that have been stored for more than 10 years, is expanding by 550 BTC per day, which is more than the current mining issuance of 450 BTC per day. This pattern shows that holders are very sure of themselves, since only 3% of days saw a drop in long-term ownership. 17% of Bitcoin’s total supply is currently thought to be illiquid, and some estimates say this might rise to 30% by 2026.
Realized profit measurements provide us more information about how the market feels. The 7-day moving average of realized profits is still below $1 billion, which is the same level as it was following the October 2024 correction. This cautious profit-taking conduct shows that long-term holders still believe in Bitcoin’s future, which could lead to new upward momentum when the economy settles down.
Institutional demand keeps growing, and Bitwise thinks that Bitcoin will bring in $120 billion by 2025 and $300 billion by 2026 in the most likely case. Analysts think Bitcoin will hit $1 million, which would mean a market cap of $21 trillion, or 10 times what it is now. This is because supply is limited and institutions are buying up Bitcoin.
Ethereum’s Support at $2,500 Holds
Ethereum ETH/USD has a tough time competing because its staking rates are below 3%, which puts it behind a number of DeFi protocols and stablecoins that pay interest. The decrease in staking incentives shows that the protocol has been successful in getting validators to join. There are now over 35 million ETH staked, which is 28% of the entire supply. But this accomplishment means that individual stakers will get less and less money over time.
Ethereum has both competition and potential with the rise of stablecoins that pay interest. SyrupUSDC and sUSDe both provide returns of 6% and 6.5%, which is a lot better than Ethereum’s staking yield of less than 3%. The market for stablecoins that pay interest has increased by 235% in the past year, reaching a total market value of $11.4 billion.
Ironically, a lot of competing yield products run on Ethereum’s infrastructure, which might make the network’s long-term value argument even stronger. According to the Chainlink DeFi Yield Index, stablecoin lending rates are approximately 5% for USDC and 3.8% for USDT. DeFi lending protocols are still mostly based on Ethereum.
Technical research shows good trends, and Ethereum’s recent price action is similar to how it broke out in 2017. After months of consolidation, the cryptocurrency has returned to the 50-week moving average. This is identical to the pattern that came before its historic 2017 run. If the pattern persists, analysts think that the price might go up to more than $4,000, which would be a big gain from the current price of about $2,541.
Solana Price Prediction: $200 Next Target?
Solana (SOL) has had a rough week, with its price decreasing 14% from $158 to $143 after solid resistance levels. The network’s fundamentals reflect worrying patterns, such as DApp activity not growing and weekly revenue from decentralized applications dropping below $40 million. This is a big drop from the $100 million weekly peaks witnessed between November and February.
The drop in interest in memecoins has hit Solana’s ecosystem hard, because a lot of the network’s recent development was due to speculative token launches. The total value locked on the Solana network has stayed at $10 billion, but the absence of increase in constructive economic activity makes it hard to see how SOL tokens will stay in demand.
Derivatives markets show that more people are becoming bearish, as SOL futures open interest rose 19% to 45.7 million SOL and financing rates declined to 0%, which means more people want to take short positions. The financing rate has not stayed above 15% each year for the past three months. This shows that leveraged traders are not very confident in the market as a whole.
But there are a few things that could change Solana’s luck. The SEC’s possible approval of a SOL spot ETF is a big short-term opportunity, and the long-term growth of tokenized real-world assets on Solana’s blockchain might be a source of ongoing demand. Cantor Fitzgerald analysts said that Solana is “meaningfully better than Ethereum across every metric,” pointing to higher operational efficiency and significant developer growth as examples.
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