Solana’s native token, SOL, surged to a seven-month high on September 18, 2026, leading a broad cryptocurrency rally that saw Bitcoin reclaim the $80,000 level. The market-wide upswing came as a surprise to many, occurring just days after the U.S. Senate failed to advance the much-anticipated CLARITY Act, a comprehensive crypto regulation bill.
On a day of significant gains, Solana (SOL) jumped 11.5% to hit $112.41, its highest point since February. Bitcoin rose more than 5%, while Hyperliquid’s HYPE token also notched a new all-time high above $91. The rally suggests investors are shrugging off the legislative roadblock, focusing instead on positive regulatory movement from federal agencies and key technical upgrades.
Solana price jumps on network upgrade
Solana was a clear standout performer, with its price appreciating by approximately 37% over the past 30 days. The rally on Friday pushed its market capitalization to around $66 billion, cementing its position as the seventh-largest cryptocurrency. Trading volume over a 24-hour period swelled to $6.1 billion as interest in the asset peaked.
The price action coincided with a significant technical milestone for the network. On September 18, developers implemented proposal SIMD-0525, which lowered Solana’s slot time — the interval at which a validator can produce a block — from 300 milliseconds to 250 milliseconds. This change effectively increases the network’s processing speed from roughly 3.3 slots per second to four, a tangible boost to its transaction capacity.
This increase in Solana transaction capacity is part of a longer-term goal to reach a 200-millisecond slot time. The upgrade’s successful deployment appeared to fuel investor confidence. Pantera Capital founder Dan Morehead told CNBC on Friday that his firm is “much more bullish” on Solana than Ethereum, even while acknowledging that both are valid long-term projects.
The rapid price increase triggered a squeeze on leveraged traders. As SOL climbed past $109, about $146 million in short positions were liquidated within just 60 minutes. On-chain data suggests a strong support floor has formed, with over 40 million SOL tokens changing hands around the $100 price level.
Bitcoin reclaims $80,000, liquidating short sellers
The entire market seemed to take its cue from Bitcoin, which staged a powerful recovery. After briefly dipping to a multi-week low of $75,000 following the CLARITY Act’s failure in the Senate, the leading cryptocurrency surged back above $81,000 in a rapid rebound. The move demonstrated remarkable resilience that caught many bearish traders off guard.
The advance above $80,000 triggered a cascade of liquidations totaling $507.06 million across the market in 24 hours. An overwhelming 89% of these, amounting to $449.71 million, were from short positions — traders betting on a price decline. Bitcoin itself accounted for $237.77 million of these liquidations, indicating a powerful short squeeze was a primary driver of the rally.
Analysts note that while the initial drop to $75,000 was concerning, the subsequent recovery suggests the market had already priced in the legislative disappointment. The key challenge for Bitcoin now is to break a resistance zone between $81,600 and $83,000.
A sustained move above this range could open the door to a retest of the $90,000 mark, while a fall below $70,000 would increase the risk of further declines.
Regulatory landscape shifts without congress
The market’s bullish turn in the face of a legislative setback in Washington highlights a growing belief that the crypto industry’s fate may not rest with Congress. While the CLARITY Act’s failure was a blow to hopes for a clear, unified regulatory framework, federal agencies are not waiting. This dynamic of Bitcoin regulatory speculation has been a key market driver.
On September 18, the Commodity Futures Trading Commission (CFTC) filed its proposed crypto asset rulemaking with the White House for review, a sign that it is pressing ahead with its own agenda. This followed a move by the Securities and Exchange Commission (SEC) a day earlier to release a long-awaited “innovation exemption,” designed to permit the on-chain trading of tokenized stocks.
“The industry doesn’t need Congress,” Pantera Capital’s Dan Morehead stated bluntly. “The SEC and CFTC are enacting all of the things that would have been in Clarity anyway.” This sentiment seems to be spreading, as investors recalibrate their expectations and focus on the practical rulemaking that is taking shape, regardless of legislative gridlock.
Furthering this theme, a House panel also voted during the week to advance the American Reserve Modernization Act. The bill directs the Treasury Department to maintain a secure Bitcoin storage facility, lending another degree of legitimacy to the asset class from a different branch of government.
Investor sentiment turns positive amid ETF inflows
The renewed optimism is also reflected in investment flows and commentary from major players. Entrepreneur Kevin O’Leary revealed he is “back in the saddle buying new positions,” betting on the next market cycle. This anecdotal evidence is supported by data from exchange-traded funds (ETFs), which are a key barometer for institutional interest.
After seeing net outflows of $462.7 million last week, U.S. spot Bitcoin ETFs returned to net inflows on September 17. Meanwhile, U.S. spot Solana ETFs have been a source of strength, recording $13.19 million in net inflows this week alone. Total assets in Solana investment products stood at $1.42 billion, with Bitwise’s BSOL fund leading the pack with over $1 billion in accumulated inflows.
However, not all analysis is purely bullish. Analysts at JPMorgan noted that high short interest around BlackRock’s IBIT Bitcoin ETF suggests investors remain more cautious on Bitcoin compared to gold. They posit that if this hedging activity eases, it could provide more relative support for Bitcoin’s price.
For now, the market is celebrating. “Markets are trading suspiciously well after the double whammy of Clarity Act failure and Warsh’s hawkish hike on Wednesday,” said Jeff Anderson, Head of US at STS Digital. With yields lower and altcoins outperforming, traders appear to have decided that the regulatory and macroeconomic bumps in the road are manageable.