Daily Crypto Signals: Bitcoin Surges Past $97K, Solana Ecosystem Experiences Record Growth

Bitcoin continues its bullish momentum above $97,000 while Solana's stablecoin market cap hits an all-time high of $13 billion, signaling strong ecosystem growth

The cryptocurrency market is displaying impressive resilience as traders await the Federal Reserve Open Market Committee (FOMC) gathering on May 7. At the $94,500 level, Bitcoin (BTC) enthusiasts are holding firm, forming a cluster of long bets in the futures market around $94,400.

A rapid increase of around $189 million in Bitcoin futures open interest over recent hours signaled persistent buying demand, correlating with a 15% surge in aggregated trading volume.

After the last five interest rate judgments, Bitcoin's velocity usually slows down before FOMC meetings and becomes more volatile afterward. As the statement for this week could spur similar behavior, analysts at Glassnode observed this trend.

Furthermore, New Hampshire has become the first U.S. state to permit its government to invest in Bitcoin. Governor Kelly Ayotte signed House Bill 302, enabling the state treasury to engage in cryptocurrencies with a market capitalization over $500 billion.

This follows Governor Katie Hobbs' veto of Arizona's similar measure on May 6 and Florida removing two proposals for crypto reserves from consideration on May 3.

Bitcoin Surpasses $97,000

Bitcoin (BTC/USD) recovered above $95,000 after briefly dipping to nearly $93,500, currently trading at nearly $97,446.

Ahead of the Federal Reserve's interest rate announcement, the market displayed a strong positive attitude as traders anticipated potential liquidity injections, which would typically benefit cryptocurrencies markets.

Changpeng "CZ" Zhao, the former CEO of Binance, predicted that during the current market cycle, Bitcoin could reach levels between $500,000 and $1 million.

In an interview with Rug Radio on Friday, Zhao highlighted the crucial role of Bitcoin spot-traded funds (ETFs) in driving this price action.

"Bitcoin is going up since most of the ETFs are Bitcoin-based," he stated.

Moreover, government accumulation and the increasing institutionalization of Bitcoin provide further evidence for the asset. Despite criticism from the International Monetary Fund, El Salvador continues to add to its Bitcoin reserves, now holding around 6,170 BTC, valued at nearly $580 million.

The weakening U.S. Dollar Index (DXY), which fell below 100 for the first time since July 2023, combined with gold's 12% rise over the past 30 days, indicated waning confidence in traditional financial markets and supported limited assets like Bitcoin, according to market analysts.

Solana Shows Promise As Stablecoin Market Cap Hits Record $13B

Although Solana (CRYPTO:SOL) failed to maintain its April 25 high of $156.25, its native token is currently trading at $148.78 and shows positive technical trend signals.

The Solana ecosystem is demonstrating impressive fundamental expansion across several criteria.

Most notably, Solana's stablecoin supply has surged 156% in 2024, reaching $13 billion to set a new all-time high. Out of Solana-based stablecoins, Circle's USDC holds a 77% market share.

As observed between December 2023 and August 2024, a 230% increase in SOL price coincided with a 160% rise in stablecoin inflows, suggesting a historical linkage with price gains.

Solana's total value locked (TVL) also saw a gain of over 25%, rising from $6.1 billion on April 9 to $7.65 billion on May 6.

Over the past month, the network saw a 25% increase in daily transaction count, reaching 57.77 million transactions.

Solana boasts an impressive 27.7% market share in distributed exchange (DEX) volume, placing it ahead of both BNB Chain and Ethereum.

Technical analysis reveals that SOL has formed a bull flag pattern on daily charts, indicating a potential rally to $220, a 53% increase from current levels.

Maintaining stability between $120 and $130 will be crucial for SOL to potentially reach $178 and beyond, according to crypto specialists.

Standard Chartered Predicts 400% Gain In BNB By 2025 End Asset management firm Standard Chartered is predicting that Binance’s ecosystem token, BNB (CRYPTO:BNB), could more than quadruple in price by the end of 2025.

According to their research analysis, BNB might climb to around $1,275 per token by year-end and could hit $2,775 by the end of 2028.

“Since May 2021, in terms of both returns and volatility, BNB has traded almost exactly in