As you may already know, the US Congress passed a last-minute bill to avert a government shutdown. The bill, which was signed into law by President Biden on Saturday, includes a $16 billion increase in federal disaster assistance, as well as funding for Ukraine.
What does this mean for cryptos like Solana (SOL)? Some investors believe that the new flow of dollars into the economy will be favorable to trendy cryptos like SOL. The logic is that as the money supply increases, the value of all assets, including cryptos, will tend to rise.
However, it is important to note that the relationship between the money supply and cryptocurrency prices is complex. There are other factors that can affect crypto prices, such as investor sentiment, regulation, and technical developments.
In the short term, the news of the US government's increased spending led to a pump in SOL price because according to Coinshares:
Solana Is the ‘Most Loved Altcoin Among investors'
Disclaimer: This is not financial advice.
