Overview
Crypto markets experienced a downturn on Monday, coinciding with the U.S. holiday, Presidents’ Day. Analysts noted a wave of profit-taking among traders. Major cryptocurrencies, Solana (SOL) and XRP, each fell approximately 4%, leading the decline as Bitcoin (BTC) dropped 1.1% and BNB decreased by 0.5% over the past 24 hours. Interestingly, Cardano (ADA) and Ethereum (ETH) managed to gain 2% during the same period.
Urgent Insights
- Solana and XRP led the major declines in the crypto market.
- Jupiter’s JUP token fell 9%, heavily influenced by its ties to the controversial LIBRA coin, mentioned by Argentina’s President Javier Milei as a potential supporter of small businesses. However, the token’s value diminished rapidly post-release, leading to legal scrutiny for its operators.
Market Performance
Furthermore, the CoinDesk 20 index slid 1.29% during this trading period, reflecting the overall risk sentiment in the crypto marketplace. “Given the absence of notable crypto-specific catalysts, the market has appeared predominantly influenced by macroeconomic factors, particularly due to the persistent correlation between BTC and equities,” QCP Capital emphasized.
Traders Perspective
Traders are notably eyeing the implications of the recent macroeconomic data, with BTC appearing resilient despite broader declines in altcoins (down 40-60% recently). Many attribute Bitcoin’s stability to its shifting holder base, now predominantly consisting of institutional investors who focus on SBTC, maintaining a range of around $96,000 to $97,000 despite fluctuations in the crypto landscape.
Conclusion
Overall, while the holiday set a subdued trading tone, the emergence of institutional investment in Bitcoin might offer some stability as the market seeks new drivers for growth.
