Crypto Market Declines as Solana, XRP Lead Losses on U.S. Holiday

The cryptocurrency market faced a downturn on Monday as traders secured profits and waited for fresh catalysts, coinciding with the U.S. market closure for Presidents’ Day. Solana (SOL) and XRP recorded the steepest declines among major digital assets.

SOL and XRP each dropped 4%, while Bitcoin (BTC) slipped 1.1%, and Binance Coin (BNB) edged down 0.5% in the past 24 hours. Meanwhile, Dogecoin (DOGE) fell 3%, while Ethereum (ETH) and Cardano (ADA) showed some resilience, gaining 2% each by midday in Europe.

Among mid-cap cryptocurrencies, Jupiter (JUP) saw the largest decline, plunging 9% after links emerged between its development team and the controversial LIBRA token. LIBRA, which was briefly promoted by Argentina’s President Javier Milei last week as a potential economic tool for small businesses, saw a sharp collapse in value following its launch, with its operators now under legal scrutiny.

The CoinDesk 20 Index (CD20), which tracks a broad range of leading cryptocurrencies, fell 1.29%, reflecting the overall market downturn.

Traders Focus on Macro Trends, Bitcoin Holds Firm

With no major crypto-specific developments to drive sentiment, price movements are largely tied to broader macroeconomic conditions. Analysts at QCP Capital noted that despite ongoing concerns around tariffs, inflation, and fiscal policies, market volatility remains unusually low.

“Bitcoin has remained surprisingly stable amid macroeconomic uncertainty. While traders are cautious, crypto options volatility and the VIX index are still at their lows,” QCP Capital wrote in a market update.

Bitcoin’s open interest (OI)—a measure of outstanding options contracts—has not seen significant recovery since the January month-end expiry, suggesting that traders are waiting for more concrete policy signals rather than reacting to general pro-crypto rhetoric.

Meanwhile, data from Deribit shows that the $110,000 call option has been the most popular trade this month, though Bitcoin itself remains stuck in a tight range below $100,000.

Institutional Demand Supports Bitcoin

Bitcoin’s price stability stands in stark contrast to the deeper corrections seen in the altcoin market, where many tokens have dropped 40-60% over the past month. Institutional investors appear to be playing a key role in supporting BTC, according to Jeff Mei, COO of Taiwan-based crypto exchange BTSE.

“Unlike many altcoins that have seen sharp drawdowns, Bitcoin has maintained its price near $96,000-$97,000. This likely reflects a shift toward institutional ownership, which could sustain its relative strength in the coming months,” Mei told CoinDesk via Telegram.