Solana Suffers Crash, Joining Market Downturn with 15% Loss

Solana’s dramatic 15% crash to $92.92 amid fears of a Bitcoin ETF denial and broader crypto market volatility.

Man seeing Solana coins go into red.
Created by Kornelija Poderskytė from DailyCoin
  • Solana’s value drops 15%, reaching a low of $92.92.
  • The broader crypto market is in a significant downturn.
  • SEC’s potential ETF denial fuels market anxiety.

Just as markets were certain that the Bitcoin spot exchange-traded fund (ETF) was coming, doubts were emerging. Amidst this uncertainty, Solana has been among the crypto tokens seeing a steep decline. 

The sudden crash of Solana’s value is closely tied to the market’s reaction to the U.S. Securities and Exchange Commission’s (SEC) anticipated decision on spot Bitcoin ETFs

Bitcoin ETF Uncertainty Fuels Solana Crash

The recent plunge in Solana’s price to a low of $92.92, marking a 15% decrease, has sent ripples throughout the cryptocurrency community. This downturn coincides with the broader market instability fueled by growing fears over the SEC’s potential denial of the much-anticipated Bitcoin spot ETF. 

Candlesticks showing Solana's price performance.

Moreover, online betting markets show that participants are more uncertain about the EFT approval. Polymarket’s bet on the Bitcoin ETF approval by January 15 dropped from 89% in favor on Wednesday to just 77%. 

The anxiety surrounding this decision has caused a significant shockwave, affecting not only Solana but also Bitcoin, Ethereum, XRP, and more.

What Happens If Bitcoin EFTs Are Denied

Matrixport analyst Markus Thielen’s insights suggest a bleak outlook for the crypto market if the SEC denies the ETF proposal. With potential cascading liquidations, there’s a looming fear of Bitcoin’s value dropping drastically, which could impact the entire crypto ecosystem, including Solana. 

Bloomberg’s ETF analyst, Eric Balchunas, described the situation as “the rug pull of the decade,” highlighting the intense anticipation and subsequent disappointment within the crypto community.

On the Flipside

  • According to online betting markets, most investors still anticipate that an ETF approval is more likely than not. 
  • The price volatility among major cryptos, including Solana, reflects shifting confidence in the market in the likelihood of approval. 

Why This Matters

The Solana crash reflects the sensitivity of cryptocurrency markets to regulatory news, affecting investor confidence.

Read more about the Solana network and ecosystem: 
Solana (SOL): The Fastest Layer One Blockchain

Read more about crypto adoption: 
Crypto Payments Now Accepted By 312 Major Brands: Study

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.