This hasn’t been a good day for markets, with Federal Reserve fears weighing on both stocks and cryptocurrencies. For BTCS (NASDAQ:BTCS), this means an exciting announcement is flying under the radar. The company announced it is expanding its infrastructure to include Solana (SOL-USD), but BTCS stock is still down. Wise investors may find this update is still worth watching.
What’s Happening With BTCS Stock
An announcement from BTCS this morning confirmed that Solana will now be included in the company’s blockchain infrastructure. As an official statement notes, “In addition to BTCS’ current revenue streams, it will now be rewarded with SOL tokens.”
However, this news has not had much visible impact on BTCS stock. Shares are down less than 1% alongside the major indices. Investors should note that major cryptocurrency prices are also down for the day.
Why It Matters
Right now is a complicated time to be in the cryptocurrency space. Other related stocks, like Riot Blockchain (NASDAQ:RIOT) and Marathon Digital (NASDAQ:MARA), have also been declining today. When crypto prices are down across the board, it’s hard for the stocks that depend on them to overcome the negative momentum.
Investors shouldn’t be discouraged, though. This decision from BTCS will benefit the company as crypto markets improve. Last month we saw BTCS stock shoot up when the company announced it was expanding its infrastructure staking operations to include Algorand (ALGO-USD).
What Comes Next
Solana is a cryptocurrency that has been growing in popularity, particularly thanks to its uses with non-fungible tokens. If this trend continues, companies that work alongside it like BTCS will gain.
Today’s story is a good reminder of the importance of examining broader market forces through a macroeconomic perspective. BTCS stock is struggling, but it nothing to do with the breaking Solana news. Investors should be keeping a close eye on the stock as crypto price swing back in the right direction.
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On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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