Sign Up on MEXCSolana Price Tumbles as SOL Founder Compares Looming US Bond Market Crisis to MicroStrategy
Highlights
- Solana price is dropping today amid a looming crisis in the US bond market after US Treasury yields rose.
- Solana founder Anatoly Yakovenko has compared this crisis to MicroStrategy, which is currently facing unrealized losses due to falling BTC prices.
- Whales are also selling Solana due to growing uncertainty, with two addresses sending $26M SOL to exchanges in the last 24 hours.
Crypto assets are facing turbulence amid the ongoing trade war between the US and China. Solana (SOL) has been among the worst-hit altcoins amid macroeconomic fears, with its price dropping by 15% in just seven days. The decline could worsen in the coming days after a sharp spike in the 10-year note yield triggering concerns about a looming crisis in the US bond market, which SOL founder Anatoly Yakovenko compared to MicroStrategy.
Solana Price in Focus Amid Looming US Bond Market Crisis
The ongoing trade war is not only causing havoc for Solana price, but the losses are now extending to the bond market. This is after a surge in both the 10-year and the 30-year treasury yield.
If the reciprocal tariffs that went live today worsen the situation, the existing bondholders may decide to sell. This will push the yield even higher and trigger a US economic recession which impact Solana price.
SOL founder, Anatoly Yakovenko, has weighed in on this situation and compared it with MicroStrategy, which uses debt to fund its Bitcoin purchases. The recent downturn in Bitcoin price has weighed on Michael Saylor’s Bitcoin bet as reports suggest MicroStrategy may sell BTC to meet debt obligations.
With this crisis in the US bond market looming, and MicroStrategy’s Bitcoin bet likely failing, Solana price remains at risk.
Whales Dump SOL As Another Sub-$100 Crash Approaches
Whales are actively selling Solana as the level of fear grows. According to Lookonchain, these whales are withdrawing SOL from staking platforms and depositing tokens on exchanges.
In the last 24 hours, two whale addresses unstaked and sold 248,762 SOL valued at more than $26 million. This shows a bearish market sentiment as traders who are staking Solana anticipate that the price may drop further below $100.
Nevertheless, data from Blockworks hints that bearish trends are not the only reasons causing stakers to sell Solana. The yield on SOL staking has plunged significantly, making it less attractive to traders looking to hold Solana.
Solana Price Prediction and Analysis
Top crypto market analysts have shared mixed sentiments on Solana price. Popular analyst Ted noted that SOL has bounced from a multi-year support trendline, which mirrors what happened in Q3 2023.
In his analysis, Ted observed that the last time that Solana tested this trendline, it recorded a 1,000% gain. If history rhymes, SOL could flip resistance at the $215-$275 before making a run past $500.
However, trader Alex opined that the only way for SOL price to rally was if it dropped to test support at $80. He added that SOL price needed to drop below $80 to present a good entry point for traders.
Amid the mixed Solana price forecast from analysts, this altcoin is certainly facing intense volatility. The looming crisis in the US bond market and whale selling are among the reasons why Solana is not out of the woods yet and could decline below $100.
Frequently Asked Questions (FAQs)
1. Why is Solana price dropping today?
2. Why are US Treasury Yields rising?
3. Will Solana price drop below $100 again?
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