As Crypto Market Matures, What’s Next for Bitcoin, Ether and Solana?
But crypto’s struggles to surpass record highs appear to go further than recent news events. Ether and SOL prices appear to key off of bitcoin, with both showing a very high correlation to the most venerable of the crypto assets (Figure 2). Take bitcoin for example. On April 20 last year, bitcoin underwent its latest quadrennial halving, with the new supply of coins dropping to approximately 165,000 per year from a previous level of just over 330,000 per year (Figure 3). In the past, quadrennial halvings tended to precede tremendous rallies, with bitcoin prices rising anywhere from a few hundred percent to many thousand percent in the 12 months after new supply is further restricted (Figure 4). This time around,…
