• 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.

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 he

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Author: Samantha LKM