Bitcoin Approaches $58,000 as Market Declines Before Data-Heavy Week
Bitcoin (BTC) and the broader cryptocurrency market faced a downturn over the weekend, with BTC hovering just above $58,500, marking a 4.8% decline in the past 24 hours. Exchange-traded funds (ETFs) in the U.S. that track these assets experienced outflows on Friday, with BTC ETFs witnessing a loss of $89 million and ETH ETFs seeing outflows of $15.7 million.
The decline in bitcoin triggered a broader selloff in the crypto market as traders sought indications ahead of a busy week to make informed decisions about their positions. BTC dropped by 4.8% in the last 24 hours, trading slightly above $58,500 during the Asian morning hours on Monday, according to data from CoinDesk Indices. The overall crypto market, as tracked by CoinDesk 20 (CD20), also fell by 5.2%, with Ether (ETH) experiencing a 3.5% loss.
Major cryptocurrencies like Solana’s SOL and toncoin (TON) led the losses, with a 7% decline. BNB Chain’s BNB saw a 3% drop, while dogecoin (DOGE) fell by 6%, and Cardano’s ADA and xrp (XRP) slid by 5%. Additionally, tokens from blockchains Aptos (APT), Arbitrum (ARB), and The Sandbox’s SAND dropped by as much as 7% before scheduled unlocks that are expected to release over $120 million worth of tokens into the market.
Some analysts cautioned about a potential further decline in BTC in the upcoming weeks due to technical weaknesses. However, they also pointed out upcoming traditional market releases that could exert upward pressure on prices.
Augustine Fan, head of insights at SOFA.org, mentioned that crypto prices are likely to remain rangebound with a downward bias. He highlighted technical damage and sentiment drag, with on-chain cost models and MVRV models suggesting a possible shake-out before the Jackson Hole event.
Market observers noted the lack of a clear anchor for crypto markets, making them susceptible to ongoing position adjustments. They highlighted the subdued ETF inflows for BTC and ETH in recent sessions.
Looking ahead, both the U.K. and the U.S. are set to release July’s Consumer Price Index (CPI) readings on Wednesday. Australia’s consumer confidence data and Japan’s Producer Price Index (PPI) are scheduled for release on Tuesday.
Later in the week, retail giants Alibaba Group and Walmart will announce their earnings on Thursday, while Hong Kong and Taiwan will unveil updated gross domestic product (GDP) figures on Friday. These traditional market events often influence crypto prices by revealing spending patterns and the overall economic condition, with positive releases tending to drive prices up as investors lean towards riskier assets like cryptocurrencies. Conversely, disappointing earnings or data releases can lead to a shift towards safer investments.
