The post Solana’s momentum against Bitcoin weakens – Explained appeared on BitcoinEthereumNews.com.

SOL/BTC has been in decline since mid-January 2025, showing weakening demand Sharpe Ratio and NRM metrics indicated growing volatility and potential risk for Solana Solana’s [SOL] battle against Bitcoin [BTC] has been a thrilling ride, but experts suggest that the tide may be turning. As Solana faces increasing pressure, several key metrics are hinting at a potential bear market for SOL/BTC, reminiscent of the struggles Ethereum [ETH] faced in its own battle with Bitcoin. With momentum slowing and bearish indicators mounting, are the good times for Solana coming to an end? State of the SOL/BTC market The SOL/BTC trading pair has seen a decline in recent weeks, indicative of broader market conditions. In fact, the data highlighted a clear downtrend since mid-January 2025, with the pair dropping from its high of 0.0024 BTC to its press time level near 0.0020 BTC. A hike in selling pressure and falling trading volumes have exacerbated the drop, signaling weaker demand relative to Bitcoin. Source: TradingView Historically, Solana has shown periods of strong outperformance against BTC. However, its current decline aligns with market corrections and fading momentum. The MFI, for instance, showed a recent uptick, alluding to a possible short-term recovery as buyers cautiously re-enter the market. SOL/BTC – Sharpe ratio insights The data highlighted the relationship between the SOL/BTC pair’s price and its Sharpe Ratio. Historically, peaks in the Sharpe Ratio align with price surges, as seen in mid-2021 and mid-2023. However, sharp declines in this ratio often signal heightened volatility and risk – Coinciding with price downturns. Source: Alphractal At the time of writing, the Sharpe Ratio was hovering near neutral or negative territory, reflecting diminished risk-adjusted performance for SOL relative to Bitcoin. This seemed to be in line with the recent price weakness. The pattern pointed to market hesitation, with investors…

---

Filed under: News - @ February 8, 2025 6:25 pm