Bitcoin Hits $116K on Inflation Cooldown: Altcoin Gains Led by Solana

Bitcoin climbed 4% last week, reclaiming levels above $116,000, driven by softer US inflation data and continued signs of weakness in the labor market. The rebound has coincided with five consecutive days of inflows into spot bitcoin ETFs, totaling $2.32 billion, suggesting renewed institutional interest in cryptocurrency amid expectations of potentially lower interest rates.

“Investors are rotating back into bitcoin with renewed confidence, as softer inflation data could lead to a more accommodative interest rate environment,” said Simon Peters, Crypto Analyst at eToro.

Altcoins Rally, Led by Solana

Major altcoins have also seen strong gains. Solana surged 16%, adding $20 billion to its market capitalization and overtaking BNB to claim the fifth spot in the total market capitalization rankings. Total Value Locked (TVL) in the Solana ecosystem reached an all-time high of $13 billion, reflecting growing confidence in the network.

Investors are now awaiting the US Federal Reserve meeting, including the interest rate decision and Chairman Powell’s press conference on Wednesday. Markets are pricing in a 25-basis-point cut, though a larger reduction of 50 basis points or more could further boost cryptocurrency prices.

Biggest Movers

Serum ($SRM), a Solana-based protocol for decentralized exchanges, was among the biggest gainers, up 90% last week due to increased buying momentum in the Solana DeFi ecosystem.