Solana Options Peak: Is SOL's Bull Run Over?

Cryptocurrency markets have been bearish this week, but there are still pockets of optimism to be found. Amberdata's Greg Magadini believes that the data from derivatives markets suggests that options trading volume on Solana peaked around the inauguration last month, which could imply that SOL has reached its peak.

Magadini argues that the bearish story within altcoins is that their supply is essentially unlimited, unlike the limited fixed supply of Bitcoin. This dynamic is hard to overcome, as seen in the divide between hard money narratives like gold and commodities like coffee and cocoa. He also notes that the potential AI bubble and the bitcoin vs. crypto discussion make more sense in this context.

Bitcoin, on the other hand, remains the solid narrative. Magadini expects it to trade sideways between $85,000 and $100,000 for the next two to three months, as a period of consolidation is needed after the bullishness seen at the end of last year. During this time, he believes that Bitcoin will gain dominance, while the altcoin space may experience a flush out, as seen with SOL and ETH.

Magadini's analysis suggests that the recent volatility in the SOL-BTC ratio and the ETH-BTC ratio is a sign of retail flow, or lack thereof. He is not overly concerned about this development, as it is a natural sign that the market may be entering a speculative phase, as many altcoins do not yet have fundamentals tied to them.