Downtrend & MemeSzn

The crypto market has been going down since the producer price index and the consumer price index data came worse than expectations. As the market's purely green sentiment has shifted to a cautious bull condition, we are watching the red candles in the crypto ecosystem.

Similar to the case in crypto, we see huge red candles in S&P500 and NASDAQ as the investors started to take the risk of longer stable interest rates into consideration. In this case, the markets may need to wait longer to get fresh money flowing into the assets. Otherwise, with limited liquidity, the real bull market may not happen soon. We are watching Bears vs Bulls hunting each other almost everywhere.

As the investors took profit and the bullish sentiment is broken down, the whole market follows the trend that Bitcoin opened. At that point, there were only a few exceptions that performed really well. Solana ecosystem was able to positively diverge from the rest of the market thanks to the hype on meme coins.

Though the meme coins drained the market's liquidity, the traders sold their altcoins to buy meme coins on Solana, SOL and some major tokens in the ecosystem gained power whilst the rest was purely red in crypto.

Meanwhile, Binance exchange was accused of insider trading in BOME (a new meme coin) pairs during the listing. However, the exchange's spokesperson shared on Twitter that the transactions were investigated and there was no connection with any Binance staff regarding the manipulation of the price of the meme coin.

There is something clear that Solana has won the battle of grabbing the liquidity in the whole market. People started to sell their tokens or put in new money so that they can jump into "give $10 and get $10,000 in a day" narrative.

As it happened during the gold rush, the sellers of shovels earned the highest amount of money. As people need Solana's SOL coin, everyone rushed into it. Now, SOL outperformed BNB in terms of marketcap! This is not a big surprise considering the new hype and narratives on it. Just recently, a meme project called $SLERF generated its own narrative by burning $10M unintentionally. As of writing, SLERF is traded around $0.5 as a memecoin!

Beyond the hype, FUD and FOMO within the ecosystem, we have entered a " tense " week for the markets. The interest rate decision by the FED will be announced. Actually, we are almost certain that the interest rates will be kept stable but whether Powel, the chair of the FED, will be hawkish or dovish will affect the markets deeply.

All eyes will be on what Powel has to say. In the case that Powel mentions a possible interest rate hike within the year or no interest rate cuts by 2025, then the markets might be volatile on Wednesday due to the fear or overreaction.

Take your positions and manage your portfolio according to the risks and opportunities we may have this week.

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