Crypto Market Declines as Solana, XRP Lead Losses Amid U.S. Holiday
The cryptocurrency market experienced a downturn on Monday, with Solana (SOL) and XRP leading losses among major digital assets as traders secured profits and awaited fresh catalysts amid the U.S. Presidents’ Day holiday.
SOL and XRP both dropped 4%, while Bitcoin (BTC) slipped 1.1% and BNB Chain’s BNB declined 0.5% over the past 24 hours. Dogecoin (DOGE) also fell by 3%. Meanwhile, Cardano (ADA) and Ethereum (ETH) saw slight gains, each rising by 2% as of midday in Europe.
Among mid-cap tokens, Jupiter’s JUP saw a sharp 9% decline, largely attributed to its association with the embattled LIBRA token. LIBRA, which was briefly endorsed by Argentina’s President Javier Milei as a potential tool for small businesses, plummeted in value shortly after issuance. The team behind the project now faces legal scrutiny.
The broader market reflected the downturn, with the CoinDesk 20 (CD20) index—tracking the largest cryptocurrencies by market cap—falling 1.29%.
Market Sentiment and Institutional Positioning
With no major crypto-specific developments driving price action, macroeconomic factors appear to be influencing the market, according to QCP Capital. “The correlation between BTC and equities remains intact, and despite macro uncertainties such as tariffs, the debt ceiling, and inflation, implied volatility in crypto and the VIX remain at low levels,” the firm said in a broadcast message.
QCP Capital also noted that Bitcoin’s price has remained relatively stable despite broader market fluctuations. Open interest (OI)—a key metric representing the number of outstanding options contracts—has yet to see a significant rebound since the January month-end expiry, suggesting that traders are waiting for concrete policy decisions rather than just pro-crypto rhetoric.
The most popular options trade this month has been the $110,000 call option on Deribit, as highlighted in a CoinDesk analysis earlier Monday. However, Bitcoin itself remains range-bound, struggling to break past the $100,000 mark.
Institutional Strength in Bitcoin
While altcoins have seen sharp declines—many down 40-60% over the past month—Bitcoin has held steady around $96,000-$97,000. Jeff Mei, COO at Taiwan-based crypto exchange BTSE, attributes this resilience to a shift in BTC’s holder base. “Institutional investors have been driving Bitcoin’s stability, and this trend is likely to continue,” Mei told CoinDesk via Telegram.
