Bitcoin and Solana Market Analysis
Published: December 18, 2025
Author: Alexander Kuptsikevich
Market Overview
The cryptocurrency market has experienced a downturn, with the total market capitalization falling to $2.91 trillion, reflecting a 2.4% decrease for the day. A brief surge during the US trading session was met with selling pressure, leading to a further decline to $2.89 trillion. Major altcoins, including Ethereum, XRP, and Solana, have also seen significant losses, dropping approximately 4% in the last 24 hours.
Bitcoin Analysis
Bitcoin is currently trading around $87,000, maintaining its position from the previous day. A recent attempt to break above $90,000 was thwarted by selling pressure, establishing this level as a short-term resistance. Conversely, Bitcoin has shown resilience, bouncing back from a low of $80,000 earlier in the month, indicating strong support around the $85,000 mark. This performance highlights Bitcoin's relative strength compared to major altcoins.
Solana Analysis
Solana's price has declined to $123, approaching a critical support level established in March 2024. Since reaching its peak in September, Solana has lost approximately 50% of its value. The recent technical rebound appears to have stalled, and if the support at $120 fails, the price could potentially drop to $90 or even $70.
Market Sentiment and Trends
According to K33 Research, long-term Bitcoin holders are nearing the end of their active selling phase, which is expected to reduce selling pressure in the market. Over the past two years, 20% of Bitcoin's supply has been reintroduced to the market, and this trend is almost complete. Additionally, institutional demand for Bitcoin has surged, outpacing the rate at which miners can produce new coins. This shift in demand dynamics is significant, especially as it marks the first time since November that institutional purchases have exceeded new coin inflows.
Technical Developments
The Lightning Network (LN), a micropayment solution for Bitcoin, has reached a historic capacity high, driven by technical enhancements and adoption by major exchanges. This growth indicates a rising demand for faster and more cost-effective transaction methods within the Bitcoin ecosystem.
Conclusion
The current market conditions present a mixed outlook for Bitcoin and Solana. While Bitcoin shows signs of resilience and institutional interest, Solana faces potential challenges if it cannot maintain critical support levels. Traders and investors should remain vigilant and consider market trends and technical indicators as they navigate this volatile landscape.