Arthur Hayes, a billionaire known for founding crypto exchange BitMEX, has delved into a potential epic Solana (SOL) price surge connected to imminent turmoil in the U.S. banking system.

SOL On Verge Of Bullish Trend Reversal?

Arthur Hayes, the chief investment officer of family office Maelstrom and the ex-CEO of BitMex, expects markets to relive last year’s U.S. banking crisis, which could subsequently trigger a notable resurgence in the price of Solana. 

Hayes indicated that now might be the perfect time to hop back on the Solana train, hinting at explosive growth in the near future.

Hayes’ bullish sentiment is bolstered by recent happenings in the United States banking sector. As per a recent report by Reuters, New York Community Bancorp (NYCB) fell as much as 41% in its share price after investors became skeptical of the firm following a massive dividend reduction. This has prompted fears of a liquidity rug pull event akin to the banking crisis in March 2023.

Looking at the past, Hayes may be presuming that the U.S. government will likely inject liquidity to prevent another modern-day bank run. He expects that this move will spark a huge rally, specifically in the crypto market.

Hayes’ previous prediction on Solana, preceding the token’s move past the $100 milestone, adds a layer of credibility to his latest forecast. As such, SOL holders are now keenly watching the pundit’s analysis, hoping history repeats itself.

Solana’s Network Robustness Could Pave Way For A Price Comeback

SOL was trading for $97.56 at press time, a 1.2% gain on the day. The token soared alongside the broader crypto market rebound. At the current price level, SOL remains 62.7% lower than its peak in November 2021. The fifth-largest crypto has been unable to successfully hold above the $100 level despite recording an impressive 83% gain in December.

A significant source of optimism for SOL’s price performance emanated from the surge in deposits within the network’s decentralized finance (DeFi) sector. Moreover, there has been a notable increase in the activity of the Solana network in terms of transactions and volumes.

There has also been growing market speculation that a spot Solana exchange-traded fund (ETF) could launch in the U.S. in the future after the approval of a spot Bitcoin ETF earlier this month.

Trillion-dollar asset manager Franklin Templeton further fueled the SOL ETF hype after singing the blockchain’s praises for its progress in DeFi, infrastructure, NFTs, and meme coins. The Wall Street giant already offers a spot market Bitcoin ETF investment vehicle. 

If Hayes’ prognostication comes to pass, SOL might be primed to test its January highs around $115.

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Filed under: Bitcoin - @ February 1, 2024 10:18 pm