Chris Burniske, former head of Ark Invest’s crypto department, made a “risk indicator” statement for two altcoins in particular. Here are the famous analyst’s statements about Solana (SOL) and Ethereum (ETH) …
The analyst uses these two altcoin projects as risk indicators!
Burniske believes Solana and Ethereum can be used as risk indicators beyond trading and investment tools. According to the analyst, the SOL/ETH trading pair can be used as an important indicator of the crypto risk spectrum or simply as a tool to assess the risk tolerance of crypto investors in the market. Considering that both Solana and Ethereum have historically been much more volatile than Bitcoin, they are used to determine whether the current level of risk in the market is worthwhile.
$SOLETH has become a key indicator of crypto risk-spectrum appetite for me, alongside the OG of $ETHBTC.
— Chris Burniske (@cburniske) January 24, 2023
However, Solana and Ethereum are not assets that can only be used as risk indicators. The cryptocurrency market as a whole is a reflection of risk tolerance among investors. Crypto assets are extremely volatile and sometimes illiquid, making crypto traders extremely vulnerable to double-digit swings, especially if margin trading is in place. Those who expose themselves to such instruments are considered risk-tolerant from a traditional investor’s point of view.
Cryptocurrency market exploded
According to Burniske, ETH and SOL are unlikely to pull back any time soon, suggesting that risk appetite will only move upwards rather than lower. However, given the cryptocurrency’s reliance on equities and traditional markets in general, Solana or Ethereum should not be viewed as market movers or indicators.
As we have reported on cryptocoin.com, over the past few weeks, the cryptocurrency market has experienced a tremendous and explosive trend that has led to numerous breakthroughs and helped assets reach significant levels of resistance, which if broken will likely lead to long-term reversals and the start of a long-lasting new bull. rally lived. At the time of writing, Ethereum (ETH) is trading at $1,552 and has lost 4.24 percent in the last 24 hours. However, ETH, the second largest cryptocurrency, had risen above the $ 1,600 levels yesterday.
On the other hand, Solana (SOL), on the other hand, seems to have escaped the influence of the news for a while that it is related to FTX. SOL is changing hands at $23 at the time of writing. In November-December, SOL dropped below $10 due to the FTX crisis. Although this coin has also shown a decline in the last 24 hours, the rises have been dazzling for the last 2-3 weeks.
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