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How Bitcoin can help Solana rise to a new ATH

2min Read

Solana’s journey to a new ATH might hinge on Bitcoin surpassing the $73,750 mark.

How Bitcoin can help Solana rise to a new ATH

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  • A 0.75 correlation coefficient showed Solana’s movements closely align with Bitcoin’s price.
  • Negative sentiment around BTC and SOL could hinder immediate price gains.

Solana’s [SOL] price could be set for a new All-Time High (ATH) according to Daniel Cheung, the co-founder of Syncracy Capital. Cheung posted this on X (formerly Twitter).

According to him, Bitcoin’s [BTC] return to bullish territory was the major reason SOL might make the move. Explaining his bias, he noted that,

“Dispersion of returns to continue but we should start to see many new and older alts make new ATHs as well (I.e. $SOL, $AKT, $MKR, $TAO etc…)”

At press time, Bitcoin’s price was $67,164. This was a 10.17% increase in the last seven days. Solana’s price, as of this writing, was $173.35, representing a 19.76% increase within the same period.

In March, BTC hit a new ATH before the halving. But before that, SOL outperformed the number one cryptocurrency. Despite that, SOL failed to hit a new ATH.

Solana’s all-time high was $260.06. This happened during the bull market of 2021. This cycle, the price of the token climbed past $200. But bears ensured that the SOL failed to tap its previous high.

Solana joins forces with the king

If SOL will hit a new high with Bitcoin backing it, the correlation between the two has to be solid. AMBCrypto evaluated this by looking at data obtained from Macroaxis.

As of this writing, the correlation coefficient between Solana and Bitcoin was 0.75. Values of the metric range from -1 to +1.

If the reading is close to the negative region, it means that the price does not move in the same direction.

However, a close positive reading and close to +1 indicates a strong correlation. As such, both Solana and Bitcoin seem to move together on most occasions.

Solana shows a strong correlation with Bitcoin

Source: Macroaxis

Red days ahead still

Going into the week, there are predictions that BTC might revisit $70,000. If achieved, then it means SOL’s price might rise past $200 too.

But to hit a new ATH, the price of SOL has to increase by more than 55%. In terms of the perception around both cryptocurrencies, AMBCrypto observed that the Weighted Sentiment was negative.

According to data from Santiment, Bitcoin’s Weighted Sentiment was -1.333.

For Solana, it was -0.745, meaning that the broader market was not convinced that the prices of SOL and BTC would continue to increase.

If the sentiment remains negative, demand for SOL and BTC might drop. However, a change in the sentiment could validate a price increase.

Solana and Bitcoin sentiment are negative

Source: Santiment


Realistic or not, here’s SOL’s market cap in BTC terms


But from the look of things, Bitcoin might need to surpass $73,750 for Solana to rise past $260.

While this might not happen in a few weeks, SOL’s price might surpass its previous high before the end of the next quarter.

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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