Solana has pushed back into territory it has not visited since January, briefly reaching $119 earlier Monday. $SOL is currently trading above $118 at press time, having gained more than 9% over the past 24 hours and is up over 15% in the past week, extending a rally that has brought renewed attention to the asset.
The move comes alongside continued demand from U.S. spot Solana ETFs. The products recorded $47.62 million in net inflows on September 18, with Bitwise's $BSOL accounting for the entire day's inflow.
Last week, the ETFs attracted $60.82 million, including $58.76 million through $BSOL.
That demand adds another channel for investors to gain $SOL exposure. Solana's onchain activity also remains strong, with the network leading all Layer-1 and Layer-2 chains in weekly DEX volume for the 21st consecutive week.
In a recent statement, Ron Sade, CEO of Solmate, a Solana treasury company, expressed his belief that $SOL is still undervalued, saying that he "sees a potential path towards continued market momentum over the next year".
Bitcoin Breaks Back Above $86K
Bitcoin has joined the move, climbing above $86,000 for the first time since January. $BTC has gained more than 9% across the past 7 days and nearly 35% over 3 months, although it remains roughly 32% below its October 2025 record above $126,000.
The rebound has continued despite two bearish developments: the Federal Reserve raising rates and the CLARITY Act failing to advance in the Senate. Bitcoin initially fell as traders anticipated both events, but the market absorbed the news without the broader sell-off many participants expected.
Short sellers have also added fuel to the rally. CoinGlass data shows 130,314 traders liquidated over the past 24 hours, with total liquidations reaching $923.67 million. Nearly $785 million, or about 85%, came from short positions.
When exchanges liquidate leveraged shorts, they buy the underlying asset to close the positions. That buying can push prices higher and trigger further liquidations, creating a short squeeze.
Institutions Keep Buying
Institutional demand provides another part of the picture. U.S. spot Bitcoin ETFs absorbed $433 million on September 18, led by Fidelity's $FBTC ($310.7 million) and BlackRock's $IBIT ($108.4 million).
Those inflows offset roughly $746 million in midweek redemptions, leaving a modest $6.2 million net inflow last week. Since their 2024 launch, U.S. spot Bitcoin ETFs have accumulated nearly $55 billion in net inflows, with assets above $102 billion.
Corporate treasuries are also adding exposure. Strategy resumed Bitcoin purchases after a roughly 3-week pause, buying 950 $BTC for $75.7 million at an average price of $79,670. The purchase lifted its holdings to 846,000 $BTC.
Strive Asset Management added another 1,355 $BTC for $107.7 million at an average price of $79,475, bringing its holdings to 26,355 BTC.
Is Crypto Spring Here?
The strength of the rebound has prompted some market participants to argue that crypto has entered a new phase. Speaking on CNBC’s “Squawk Box Europe”, Bitwise CIO Matt Hougan opined, “I think this will actually be the strongest and longest-running bull market in crypto’s history,” describing the current environment as "crypto spring" and arguing that blockchain activity and institutional participation continued improving even while prices declined.
“So I think we had this unusual situation where you had a cyclical decline in prices even as you had a secular improvement in fundamentals. And now I suspect that prices are going to catch up toward the end of the year,” - Matt Hougan, Bitwise CIO
Bitcoin's performance also marks a sharp change from earlier in 2026, when technology stocks and the AI trade outperformed crypto. $BTC now stands roughly 44% higher for the third quarter, its strongest quarterly performance since late 2024.
For Solana, the combination of rising price, ETF inflows, and sustained network activity has created a similar shift in market conditions, showing that demand has returned across several parts of the crypto market.
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