Market Slump on Presidents’ Day
Crypto markets dropped on Monday as traders took profits and looked for new catalysts. With the U.S. closed for Presidents’ Day, the absence of major trading activity contributed to the sell-off.
Solana (SOL) and XRP led the declines, each falling 4%. Bitcoin (BTC) slipped 1.1%, while Binance Coin (BNB) dipped 0.5%. Dogecoin (DOGE) also suffered a 3% loss. However, Cardano (ADA) and Ethereum (ETH) managed to rise 2%, showing some resilience in the market.
Jupiter’s JUP Takes the Biggest Hit
Jupiter’s JUP saw the most significant losses among midcap tokens, tumbling 9%. The drop followed concerns over its ties to the controversial LIBRA coin. LIBRA, briefly promoted by Argentina’s President Javier Milei, quickly lost value after its launch. Its operators now face legal scrutiny, further hurting investor confidence.
Broader Market Trends
The CoinDesk 20 (CD20), which tracks the largest tokens by market cap, fell 1.29%. Analysts at QCP Capital noted that crypto prices remain influenced by macroeconomic trends.
Despite uncertainties like tariffs, the debt ceiling, and inflation, volatility indicators such as VIX and implied crypto vols remain low. Bitcoin’s price stability suggests that institutional investors continue to dominate the market.
Bitcoin Holds Steady
While altcoins have suffered steep losses in recent weeks, Bitcoin has remained relatively strong. Trading around $96,000 to $97,000, BTC’s stability reflects its growing appeal to institutional investors. Open interest in BTC options has yet to recover significantly, indicating that traders are waiting for concrete policy shifts rather than speculative pro-crypto rhetoric.
The most popular options trade this month has been the $110,000 BTC call on Deribit. This signals that some investors remain bullish on Bitcoin despite the market’s overall downturn.
What’s Next for Crypto?
With no major catalysts in sight, traders are closely watching macroeconomic factors. The correlation between BTC and equities remains intact, meaning stock market movements could influence crypto prices.
For now, investors seem cautious. Until a new driver emerges, the market may continue to see volatility, with Bitcoin providing a relative safe haven compared to altcoins.
