5 min read- Bitcoin slips back to test the 200 SMA support around 84k
- Trump failed to announce new initiatives at the Blockwork Digital Asset Summit.
- Solana future ETFs launched this week
- Where next for SOL price?
After finally breaking above its 200-day moving average, Bitcoin has failed to maintain its bullish momentum, disappointed by President Trump’s speech at a crypto summit yesterday.
Crypto prices rose yesterday before Trump’s Blockwork Digital Asset Summit speech. This turned out to be a buy-the-rumour-sell-the-news event. Trump reiterated his support for crypto and stablecoin legislation and highlighted actions that the administration had already taken. However, he failed to announce new initiatives or executive orders, disappointing an overly optimistic market.
With no fresh catalyst, Bitcoin buyers have lost momentum. At the time of writing, Bitcoin is down 0.3%, testing the 200 SMA support.
Bitcoin still trades down 23% from its record high of 109.5k amid concerns over a bear market, uncertainties over the impact of Trump’s trade policies on the global economy, and worries about a US recession. However, the selloff steadied this week, with BTC down just 0.3%. The market found some solace from the Fed, which maintained its outlook for two rate cuts this year.
Solana falls despite SOL futures ETF launch.
While Bitcoin trades almost flat across the week, Solana has fallen 6%, marking the ninth straight weekly decline. This puts losses at over 50% from its January high.
The weekly decline has come despite SOL briefly spiking 12% higher on Wednesday amid the launch of Solana futures ETFs. Volatility Shares, a US-based investment firm that specialises in developing and managing ETFs, rolled out Solana futures ETFs, which started trading on Tuesday.
Despite some fanfare around the new ETF, initial enthusiasm for Solana futures was relatively modest. Data showed that Solana futures generated a daily nominal trading value of approximately $12.3 million, significantly lower than that of Bitcoin and Ethereum futures and then ready days. However, if volumes are normalized to market caps on the launch day, then the Solana future launch aligns more closely with Bitcoin and Ethereum future launches.
Are spot SOL ETFs coming?
The Solana futures ETF launch comes after the regulatory procedure set by Bitcoin and Ethereum, whereby the future-based ETFs gained approval ahead of the spot ETF. The SEC has historically preferred an established futures market before approving spot crypto products. Several asset managers, including grayscale Franklin Templeton and Vanek, have filed for spot Solana ETFs.
This, together with President Trump including SOL in the proposed crypto strategic reserve, could increase institutional interest in Solana, potentially paving the way for spot SOL ETF approval later this year.
According to Ploymarket, traders have increased the odds of a SOL ETF approval to 88%. Meanwhile, Bloomberg puts the chances of a SOL ETF approval before the end of 2025 at 75%. Should this get approved, it could lift institutional demand for the token.
Where next for Solana’s price?
Solana’s bearish trend ran into support at 112.00 The price corrected higher before hitting resistance at 134, the falling trendline resistance. Sellers remain in control and are testing 126.00 to support the September low. A break below here could see a retest of 112, below which a lower low is formed.
Should buyers rise above 134.00, the next obstacle could be at 151.00, the 78.6% Fib retracement.
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