Binance Smart Chain Hit Hardest, Solana Drops 35%
Last week, Wall Street's downturn spilled into the cryptocurrency market. Amid heavy sell-offs in global equities, Bitcoin plunged to $35,000.
Most downward momentum emerged on Friday, fueled by disappointing Netflix earnings that dampened market sentiment and triggered panic. This uncertainty rapidly spread to crypto markets, already uneasy due to:
- Rejection of a Bitcoin ETF
- Potential Russian crypto ban
- The Biden administration's cautious stance on digital asset regulation
Despite the gloom, several Silicon Valley giants announced major crypto initiatives, blending negative and optimistic news.
Key Market Movements:
- The broader market saw double-digit declines.
- Bitcoin remained relatively stable, down only 16%.
- Ethereum fell 25%, while Solana crashed 35% after another network outage.
- Cosmos’ ATOM proved resilient, dropping just 14%.
Weekly Highlights
Silicon Valley’s Crypto Push
Tech leaders are quietly advancing blockchain projects:
- Google launched a dedicated blockchain division.
- Intel plans to produce Bitcoin mining chips.
- Microsoft’s Activision Blizzard acquisition signals metaverse ambitions.
- Meta is developing NFT profiles for Instagram and Facebook.
- Twitter integrated NFT profile pictures.
Macro Fears Infect Crypto Markets
Cryptocurrencies mirrored traditional markets last week, driven by:
- Inflation concerns
- Rocky start to earnings season
- Anxiety over monetary policy shifts
Bitcoin, traditionally a hedge against uncertainty, has recently correlated strongly with tech stocks—raising risk alarms. Analysts compare the drop to March 2020’s "Black Thursday" crash.
eToro Lists New Tokens
eToro expanded its offerings with three Ethereum-based tokens:
- Synthetix (SNX): Decentralized synthetic asset trading.
- Ren (REN): Cross-chain interoperability protocol.
- Fetch.ai (FET): Decentralized machine learning platform.
The platform now supports 45 cryptocurrencies.
Outlook for the Coming Week
Wall Street faces a pivotal week with implications for crypto:
- FOMC Meeting (Wednesday): Clarity on Fed rate hikes expected.
- Tech Earnings (Apple, Microsoft, Tesla): Will reveal global recovery trends or further downturns.
👉 Stay updated on crypto market trends
FAQ
Q: Why did Solana drop more than other cryptos?
A: Its 35% decline followed a network failure, eroding investor confidence.
Q: How does Bitcoin’s correlation with stocks affect its safe-haven status?
A: Short-term correlation challenges its hedge reputation, but long-term stores of value often rebound.
Q: What’s driving Silicon Valley’s interest in blockchain?
A: Companies seek early-mover advantages in Web3 infrastructure and metaverse ecosystems.