- Bitcoin (BTC) Price Swings: Bitcoin experienced notable price fluctuations, rising from around $42,000 to nearly $44,000, then dropping back.
- Solana (SOL) Market Activity: Solana’s SOL also showed volatility, momentarily surpassing $100 before dropping to $94. Analysts offer varied predictions for its future price movements.
- Shiba Inu (SHIB) Token Burns: SHIB has significantly increased its burn rate, removing over 9 billion coins from circulation since January 1, 2024. This effort aims to reduce supply and potentially boost the asset’s value.
BTC’s Price Swings
The cryptocurrency market has experienced enhanced volatility in the past few days, with Bitcoin (BTC) hovering in a wide price range. It was trading at around $42,000 at the start of the week before soaring to almost $44,000 (per CoinGecko’s data) on January 31.
The subsequent drop to the current level of $42,100 could be attributed to the latest Federal Open Market Committee (FOMC) meeting, during which the US central bank kept interest rates unchanged at 5.25% to 5.5%.
Some experts believe the Fed would start pivoting on its anti-inflationary policy by decreasing the benchmark in the following months. The next FOMC meeting is scheduled for March, with Chairman Jerome Powell saying it is unlikely that the rate-cutting cycle would begin then.
The former White House official – Anthony Scaramucci – and Galaxy Digital’s CEO – Mike Novogratz – are among the prominent figures who think BTC could thrive once the Federal Reserve shifts its monetary regime.
Another factor that might positively impact the price of the primary cryptocurrency in the near future is the upcoming halving, which will slash the miners’ rewards in half. It causes a reduced supply growth that could prompt a rally for the asset (assuming the demand stays the same or rises). Those willing to learn more about the halving can take a look at our dedicated video below:
Where Is SOL Headed?
Solana’s SOL has also passed through severe turbulence as of late, with its value briefly surpassing the $100 mark but eventually slipping to $94.
The popular analyst using the X (Twitter) handle, Ali, described the current price zone as a major resistance level that could propel an increase toward $113 in the near future.
Prior to that, Bluntz argued that SOL has charted a specific trajectory called the “B wave triangle,” indicating a possible plunge to the “low 70s.” The analyst remained unfazed by the potential decline, viewing it as an excellent buying opportunity.
The second-largest meme coin has recently made the headlines thanks to its impressive burn rate spike. Over 9 billion tokens have been removed from circulation since the beginning of the year, with a notable increase on January 30.
The program aims to reduce the total circulating supply of SHIB, making it scarcer and potentially more valuable in time. Every time a transaction is made on the network, a certain percentage of the transaction fee is transferred to a null address, with the process including manual and automated burns.
Last week, the team behind Shiba Inu and the layer-2 blockchain solution Shibarium introduced “a transformative token burning mechanism” designed to automate the entire system.