A slide in Bitcoin (BTC) prices has triggered a broader selloff in the cryptocurrency market over the weekend, as traders brace for a week packed with significant economic data releases. As of Monday morning in Asia, Bitcoin was trading just above $58,500, reflecting a 4.8% decline in the past 24 hours, according to CoinDesk Indices data. The wider cryptocurrency market, tracked by CoinDesk 20 (CD20), experienced a 5.2% drop, with Ether (ETH) also losing 3.5% of its value.
The downturn in Bitcoin prices coincided with notable outflows from U.S.-listed exchange-traded funds (ETFs) that track cryptocurrencies. On Friday, Bitcoin ETFs saw outflows amounting to $89 million, while Ethereum ETFs experienced $15.7 million in outflows. This trend indicates a cautious sentiment among investors as they reassess their positions ahead of upcoming economic indicators.
Among the major cryptocurrencies, Solana’s SOL and Toncoin (TON) faced the steepest losses, each dropping around 7%. Other notable declines included BNB Chain’s BNB, which fell by 3%, Dogecoin (DOGE) down 6%, and both Cardano’s ADA and XRP sliding by 5%. Additionally, tokens from blockchains such as Aptos (APT), Arbitrum (ARB), and The Sandbox’s SAND also experienced declines of up to 7%. These losses are occurring ahead of significant token unlocks scheduled for this week, which will release over $120 million worth of tokens into the market, primarily belonging to teams and early investors.
Market analysts have expressed concerns about the potential for further declines in Bitcoin prices due to technical weaknesses. Augustine Fan, head of insights at SOFA.org, noted that while there may be upward pressure from traditional market releases, the current sentiment and technical damage suggest that Bitcoin could face additional shakeouts before the Jackson Hole Economic Symposium. He stated, “Crypto prices will likely be rangebound with a bias to the weak side,” emphasizing the lack of a clear anchor for crypto markets and the muted ETF inflows for both Bitcoin and Ethereum in recent sessions.
This week’s economic calendar is packed with key data releases that could influence both traditional and cryptocurrency markets. On Wednesday, both the U.K. and the U.S. will release their Consumer Price Index (CPI) readings for July, a crucial indicator of inflation. Additionally, Australia will publish its consumer confidence data on Tuesday, while Japan’s Producer Price Index (PPI) will also be released that day.
Later in the week, major retail companies like Alibaba Group and Walmart are set to announce their earnings on Thursday, followed by updates on gross domestic product (GDP) from Hong Kong and Taiwan on Friday. These traditional market events are known to impact cryptocurrency prices, as they provide insights into consumer behavior and the overall economic landscape. Positive economic indicators often lead investors to favor riskier assets, including cryptocurrencies, while disappointing data can prompt a shift towards safer investments.
In summary, the current selloff in Bitcoin and the broader cryptocurrency market reflects a cautious sentiment among traders as they await critical economic data. The upcoming releases could play a pivotal role in determining market direction, with analysts closely monitoring the interplay between traditional financial indicators and cryptocurrency valuations.
