XRP ADAM February 21, 2025 0 Comments

Solana and XRP Lead Crypto Market Decline Amid U.S. Presidents’ Day Observance

The cryptocurrency market faced a downturn on Monday, with XRP and Solana (SOL) leading the losses among major digital assets. This decline coincided with profit-taking by traders and a lack of new catalysts to drive further momentum, as the United States observed Presidents’ Day.

Crypto Market Sees Decline as Traders Await Fresh Catalysts

Market-wide corrections were evident as investors sought to lock in profits while waiting for key developments to shape future positioning. Among the top cryptocurrencies, Solana (SOL) and XRP experienced a 4% decline, whereas Bitcoin (BTC) dropped by 1.1%. Binance Coin (BNB) saw a 0.5% dip, while Dogecoin (DOGE) recorded a 3% loss.

Interestingly, not all major cryptocurrencies were in the red—Cardano (ADA) and Ethereum (ETH) defied the trend, each gaining 2% as of midday European trading hours.

Jupiter (JUP) Suffers a Steep 9% Decline

Among mid-cap tokens, Jupiter (JUP) led the downward trend, plummeting 9%. This sharp decline is reportedly linked to its association with the controversial LIBRA coin. LIBRA recently made headlines after Argentina’s President, Javier Milei, briefly endorsed it as a potential financial tool for small businesses. However, the project saw an immediate crash in value post-issuance, leading to legal scrutiny for its operators.

The broader cryptocurrency market reflected this bearish sentiment, with the CoinDesk 20 (CD20) Index—a benchmark tracking the largest cryptocurrencies by market capitalization—sliding 1.29% over the past 24 hours.

Institutional Investors Keep

Resilient Amid Market Uncertainty

Despite macroeconomic uncertainties such as tariffs, inflation concerns, and political unpredictability, Bitcoin remains relatively stable compared to many altcoins. According to QCP Capital, the correlation between Bitcoin and traditional equities remains intact, and traders are watching closely for regulatory or policy shifts rather than just optimistic rhetoric about crypto adoption.

Open interest (OI) in Bitcoin options has also not rebounded significantly since the January month-end expiry. The most traded Bitcoin options contract this month has been the $110,000 call option listed on Deribit, suggesting that traders are positioning themselves for potential long-term upside.

Jeff Mei, COO of Taiwan-based crypto exchange BTSE, commented on Bitcoin’s resilience, noting that while many altcoins have seen sharp declines of 40-60% in recent weeks, Bitcoin’s price has held steady in the $96,000-$97,000 range. Mei attributes this stability to an increasing institutional investor base, which continues to support Bitcoin as a preferred digital asset amid market fluctuations.

Final Thoughts

With the U.S. market closed for Presidents’ Day, trading volume and liquidity were lower, contributing to the volatility seen across crypto assets. As traders anticipate key economic events and regulatory developments, the market’s next moves will depend on broader macroeconomic factors and institutional sentiment.

Investors should remain vigilant, as the crypto landscape continues to evolve with shifting market dynamics and external influences.