In the wake of Donald Trump’s re-election and recent Federal Reserve policy shifts, the cryptocurrency market has seen a fresh surge, with Bitcoin surpassing an inflation-adjusted $80,000 and Solana hitting new multi-year highs. Market analysts suggest this rally could extend through the end of the year, driven by investor optimism and increasing mainstream adoption of digital assets. While Bitcoin continues to lead, other cryptocurrencies, including Solana, Ethereum, and Cardano, are also gaining ground, buoyed by positive regulatory expectations and growing use cases within decentralized finance and other blockchain applications.
Solana (SOL) Surges to New Milestone as Crypto Bull Market Gains Momentum
Solana's native cryptocurrency, SOL, reached a remarkable milestone on Sunday, advancing to levels not seen since the last major crypto bull market. Driven by Bitcoin’s new record-breaking price surge, following Donald Trump’s recent election victory and the Federal Reserve’s additional rate cut, SOL’s ascent has cemented its position as one of the market's top-performing assets. The cryptocurrency crossed the critical $212 threshold for the first time since the height of the 2021 crypto rally, marking a 34% increase over the week. This gain outpaced Bitcoin's 18% rise and also propelled SOL into the exclusive $100 billion market cap club, alongside Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
The surge in SOL’s price, combined with the overall market momentum, has reignited discussions on crypto Twitter about a potential “flippening,” where SOL might one day surpass ETH's market cap, which currently stands at approximately $389 billion. This conversation hints at a possible shift in the market hierarchy, placing the spotlight on Solana’s rapid rise and potential to challenge Ethereum’s long-held dominance in the layer-1 smart contract sector.
Solana’s success represents a stunning comeback following the 2022 collapse of FTX and Alameda Research, which were once prominent backers of the project. The fallout of FTX cast doubt on Solana’s future, especially given its reliance on these influential supporters. However, the network demonstrated resilience, emerging from the turmoil as a go-to ecosystem for retail users and a center for the latest meme coin craze. One example is the popular pump.fun protocol, which leveraged Solana’s high throughput and low-cost structure to attract users.
In addition to the meme coin frenzy, Solana’s revival has been fueled by a resurgence in decentralized finance (DeFi) activity. Coinbase recently highlighted Solana’s on-chain trading ecosystem as the third-most profitable sector in crypto, shedding some light on its significance within the DeFi space. As a result, SOL stands out as one of the top-performing altcoins, appreciating an impressive 275% year-over-year amid a largely Bitcoin-led bull market.
Technical Analysis: SOL Breaks Out of Sideways Trend, Enters “Banana Zone”
Solana’s latest surge in value comes as it broke out of an eight-month sideways consolidation phase, a pattern that has caught the attention of traders and analysts alike. According to Julien Bittel, head of macro research at Global Macro Investor, this breakout suggests that the broader crypto market may have entered the “banana zone,” a term used to describe a near-vertical rally in the most explosive phases of a bull market.
Bob Loukas, a respected cross-asset trader, echoed this sentiment, noting that the breakout marks the beginning of a new phase of the crypto bull market. In a post on X, Loukas hinted at the possibility of SOL reclaiming its all-time high (ATH) in the near term. “SOL to ATH within 14 days wouldn’t be a surprise now,” Loukas commented, pointing to Solana’s exceptional strength compared to the rest of the market. Looking further ahead, he speculated that SOL’s rally could become “silly” by 2025, potentially pushing the token to unprecedented heights.
With SOL reaching $212 and approaching its previous all-time high of $260, Solana’s market cap has crossed the $100 billion mark, a notable achievement given the token’s relative youth compared to its peers. This growth has fueled discussions of SOL potentially surpassing Ethereum in terms of market capitalization.
Solana’s growing popularity can be attributed to several unique attributes. With its high-speed transaction processing and low-cost structure, Solana has attracted a vibrant community of developers and users alike. The platform’s architecture allows for a level of scalability that has proven challenging for other layer-1 blockchains, positioning it as an attractive alternative to Ethereum for certain use cases, particularly in areas such as DeFi, NFTs, and social applications.
Bitcoin Reaches New Inflation-Adjusted High Above $80,000 as Crypto Market Surges Post Trump Re-Election
In related news, Bitcoin soared to a new inflation-adjusted high on Sunday morning, surpassing $80,000. This landmark rally follows Donald Trump’s recent re-election to a second presidential term, sparking renewed enthusiasm in digital assets and propelling a broad-based crypto market surge. Analysts, investors, and traders alike are watching closely as Bitcoin sets the pace for a thriving cryptocurrency market, with expectations that BTC could reach even greater heights before the end of the year.
Geoff Kendrick, head of forex and digital assets research at Standard Chartered, accurately predicted Bitcoin’s impressive $80,000 price point just before the election. He remains bullish on Bitcoin’s trajectory, projecting that BTC could easily achieve $100,000 by the end of December. In an email on Sunday, Kendrick outlined his target prices for Bitcoin, pointing to the upcoming Dec. 27 options expiry date as a potential catalyst.
"$125,000, which I forecast for the end of the year, is the next level, although I note following the 2016 election a lot of Trump trades peaked around the time of the Jan. 20 inauguration...So if BTC can’t reach $125,000 by Dec. 31 I think it will by Jan. 20," the bank's head of forex and digital assets research said in an email on Sunday.
While Bitcoin remains the market leader, Kendrick suggests that the recent rally could benefit other prominent cryptocurrencies, particularly Ethereum (ETH) and Solana (SOL). Solana’s all-time high of $260, set in November 2021, is expected to be surpassed by year’s end. As for Ethereum, which reached a record $4,866 in November 2021, Kendrick anticipates it could return to these levels around the time of Trump’s inauguration in January.
In his analysis, Kendrick expressed confidence in Solana’s future performance relative to Bitcoin and Ethereum, citing the platform’s expanding ecosystem and high-speed transaction capabilities as key factors. “A fresh all-time high for SOL before year-end is inevitable,” Kendrick wrote, predicting that Solana is likely to outpace both Bitcoin and Ethereum in terms of percentage gains during this bull cycle.
Adding to the overall optimism, Cardano (ADA) has seen a surge of over 35%. This notable rally follows comments from Cardano’s founder, Charles Hoskinson, who shared his plans to advocate for favorable crypto policies under the Trump administration. Speaking on a recent podcast, Hoskinson revealed that he has close connections with several members of Trump’s new administration. He hopes these relationships could facilitate constructive discussions around crypto regulation.
"I have personal friendships with certain lawmakers and certain people who are now members of the Trump administration," Hoskinson said. "We hopefully will be able to have great dialogues with them in the coming months to put together some of this policy and I hope to be part of that but that has yet to be decided based upon the fact that they're not even in office yet."
“With all boats rising and fresh real-world use cases emerging, I see the entire asset class reaching $10 trillion by the end of 2026,” Kendrick projected.
Factors Driving the Crypto Rally
Several key factors have contributed to the recent cryptocurrency rally, including:
- Political and Economic Shifts: Trump’s re-election has spurred expectations of a more favorable regulatory environment for digital assets, while the Federal Reserve’s rate cut has increased liquidity, benefiting risk assets like cryptocurrencies.
- Institutional Interest and Adoption: Institutional players continue to make inroads into the crypto space, with big names exploring blockchain technology and cryptocurrency integration. These efforts help legitimize digital assets, attracting a wider pool of investors.
- Growing Use Cases for Blockchain Technology: Cryptocurrencies like Ethereum and Solana are riding a wave of adoption thanks to the increasing utility of blockchain technology in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs), and cross-border payments.
- Inflation Hedging: Bitcoin’s inflation-adjusted high reflects its role as a hedge against inflation, appealing to investors concerned about the depreciating value of fiat currencies amid rising consumer prices and economic uncertainty.
As Bitcoin hovers at a new all-time high, market watchers are debating just how high it can climb. With forecasts of $125,000 by early next year, Bitcoin’s rally could set the stage for a new bull market cycle. Meanwhile, the altcoin market is heating up, led by Solana and Ethereum, both of which stand to benefit from Bitcoin’s momentum and renewed investor interest in alternative assets.
For Cardano, Hoskinson’s proactive lobbying efforts with the Trump administration have injected fresh enthusiasm into the market, signaling that regulatory discussions could shape the future of cryptocurrency adoption. This budding optimism extends to the broader crypto market, as investors look forward to an era of increased legitimacy, mainstream use cases, and wider acceptance of digital assets.
In the coming months, the crypto market will likely continue to react to macroeconomic factors and policy developments, especially as the Trump administration prepares to take office. Should regulatory support for crypto materialize, the market may see an influx of institutional capital, further fueling the rally.
