Solana and Ethereum Cannot Escape Bitcoin’s Downward Trend

The Bitcoin (BTC) price curve is struggling with early effects of the new ETFs. And if the crypto reserve currency weakens, others are hit much harder. Solana (SOL), Ethereum (ETH) and other altcoins are sliding deep into the red.

Two weeks after the celebrated approval of Bitcoin ETFs in the USA, disillusionment sets in. Instead of a hoped-for Bitcoin rally, BTC is losing ground, also because early Grayscale investors are realizing massive profits . Bitcoin’s price curve has slipped to $40,000 over the last seven days, a loss of 6 percent.

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But a look at the charts shows: Ethereum (ETH) and Solana are much worse off, each down 13 percent for the week

Investors are watching these two altcoins, as well as Avalanche (AVAX) , particularly closely because they have been able to spark their own momentum in recent months for different reasons. Solana (SOL) emerged from the consequences of the FTX bankruptcy in 2023 and shone with an increase of almost 250 percent over the last 12 months.

News such as a cooperation between Solana and the credit card giant Visa and one with Shopify were the trigger for an impressive comeback, which is now visibly stalling.

At Avalanche, too, it was a cooperation with a well-known name, here the major bank JPMorgan , which triggered a run and helped AVAX achieve a good 60 percent annual increase. But now Avalanche is down 15 percent for the week and the optimism is running out of steam for the time being. Finally, with Ethereum, it was the prospect of Bitcoin scoring points in the classic financial markets via ETFs in the future that caused ETH to pump. This effect has now also initially dissipated.

Conclusion: Without Bitcoin as a locomotive, prominent altcoins are struggling

Analyzing the current situation on the crypto markets for altcoins is simple: Bitcoin is once again the undisputed trendsetter and if BTC turns negative, even the largest and most important altcoins will suffer even harder.

When Ethereum, Solana, Avalanche and others find their own momentum again will probably be closely linked to what happens next for Bitcoin. Will the price pressure on Bitcoin really ease soon due to sales on the Grayscale ETF?

Can the Bitcoin ETFs then convince in the medium term and demonstrate capital inflow? For the moment, consolidation seems to be prevalent in the crypto markets and altcoins are traditionally having a harder time than Bitcoin itself.

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(Featured image by Pierre Borthiry – Peiobty via Unsplash)

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First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.

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