Solana and XRP Lead Crypto Market Decline as U.S. Observes Presidents’ Day

Solana and XRP Lead Crypto Market Decline as U.S. Observes Presidents’ Day

Crypto Market Overview: Cryptocurrency markets faced a downturn on Monday as traders took profits and awaited new market drivers, coinciding with the U.S. holiday, Presidents’ Day. Among major digital assets, Solana (SOL) and XRP saw the steepest declines, while Bitcoin (BTC) and Binance Coin (BNB) experienced smaller losses.

Key Takeaways:

• Solana (SOL) and XRP dropped by 4%, leading the decline among top cryptocurrencies.
• Bitcoin (BTC) lost 1.1%, while Binance Coin (BNB) slipped 0.5% over the past 24 hours.
• Dogecoin (DOGE) fell by 3%, whereas Cardano (ADA) and Ethereum (ETH) saw modest gains of 2%.
• Jupiter’s JUP token plunged 9%, largely due to its reported ties to the controversial LIBRA project.

Market Reaction to Presidents’ Day:
With the U.S. financial markets closed for the holiday, crypto traders opted to lock in recent gains, awaiting fresh catalysts to influence market positioning. The CoinDesk 20 Index (CD20), which tracks the largest cryptocurrencies by market capitalization, fell by 1.29%.

Jupiter’s JUP Faces Turmoil:
Jupiter’s JUP token led midcap losses, tumbling 9% after news surfaced about its alleged connection to the LIBRA coin. LIBRA was briefly endorsed by Argentina’s President Javier Milei as a potential economic solution for small businesses. However, shortly after its launch, the token plummeted in value, with its developers now under legal scrutiny.

Macro Trends Influence Crypto Prices:
According to a report from QCP Capital, cryptocurrency price movements remain closely linked to broader macroeconomic factors. Despite uncertainties surrounding tariffs, inflation, and government debt, Bitcoin’s correlation with traditional equities has remained strong.

Interestingly, BTC’s implied volatility and the VIX (volatility index) continue to trade at historically low levels, indicating a cautious stance among traders. Open interest (OI) in crypto options has yet to recover significantly after the January month-end expiration, suggesting that investors are waiting for definitive policy changes rather than speculative pro-crypto statements.

Bitcoin Remains a Preferred Choice for Institutional Investors:
Market analysts highlight Bitcoin’s relative stability compared to altcoins. Despite several cryptocurrencies experiencing 40-60% losses in the past month, BTC has maintained a strong position around $96,000-$97,000. This resilience is attributed to the growing presence of institutional investors in the Bitcoin market.

“Bitcoin’s price action suggests that its investor base has increasingly shifted towards institutions, which is likely to continue,” said Jeff Mei, COO of Taiwan-based crypto exchange BTSE.

Insights:

As the crypto market navigates external economic factors, all eyes remain on Bitcoin’s next move and whether altcoins like Solana and XRP can regain momentum.