"Discrepancy with Middle East News" Stock Market and Coin Rally Together...Solana and XRP Soar

▲ Solana (SOL), XRP / AI Generated Image ©

Despite Middle East risks resurfacing, the cryptocurrency market successfully endured, continuing its risk-on sentiment. Bitcoin maintained the $81,000 level, and Solana surged over 15% on a weekly basis, leading the altcoin bull run.

According to TradingNews, an investment specialized media outlet, on May 11 (local time), as of 6:16 AM KST on the 12th, Bitcoin (BTC) was trading at $81,697, up 1.32% over 24 hours, according to CoinMarketCap data. Its market capitalization recorded $1.6362 trillion. Ethereum (ETH) rose by 0.56% to $2,339, and XRP (Ripple) increased by 5.55% to $1.47. Solana (SOL) surged to $97.59, marking a 15.91% jump over 7 days, and Cardano (ADA) also rose by 12.32%. The total cryptocurrency market capitalization was tallied at $2.72 trillion, and the Fear & Greed Index stood at 52, indicating a neutral zone.

Behind the market's bullish trend was the AI rally in the U.S. stock market. The New York stock market continued its upward trajectory, centered on semiconductor and AI-related stocks, despite renewed tensions in the Middle East and soaring international oil prices. The S&P 500 index closed above the 7,400 mark for the first time in history, and Nasdaq also set a new record high. Qualcomm surged 8.42%, and memory semiconductor stocks such as Micron Technology, Western Digital, and Seagate also showed strength. Market analysis suggests that expectations for expanded AI infrastructure investment are supporting overall investor sentiment for risk assets.

U.S. President Donald Trump's remarks regarding Iran increased market volatility. President Trump described the ceasefire with Iran as being in its "weakest state" and even mentioned the possibility of restarting the 'Liberation Project.' Consequently, Brent crude rose to $104.21 per barrel, and West Texas Intermediate (WTI) crude reached $98.07, fueling inflation concerns. Nevertheless, the cryptocurrency market appeared more sensitive to expectations of liquidity and prospects of institutional fund inflows.

In the altcoin market, Solana and XRP showed strong relative strength. Solana continued its bullish trend, driven by expectations for the recent U.S. cryptocurrency market structure bill, the Clarity Act, and prospects of spot ETF fund inflows. XRP also rose over 5% within 24 hours, recovering its market capitalization to the $90 billion level. In contrast, Bitcoin continues to face short-term resistance in the $82,000-$83,000 range.

The future direction of the market is likely to be determined by the U.S. Consumer Price Index (CPI), Producer Price Index (PPI), and the schedule related to the U.S. cryptocurrency market structure bill, the Clarity Act. Experts believe that if the AI rally and institutional fund inflows are sustained, Bitcoin's $80,000 support level could be further strengthened. However, soaring international oil prices and Middle East variables remain short-term risks, suggesting a high probability of continued volatile market conditions.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*