While we were enjoying our well-deserved weekend break, the market was anything but idle. When we checked the price charts this morning, we nearly had a heart attack! After recovering from the initial shock, here's what we found out.
Some market analysts have warned of a further decline in BTC over the coming weeks, citing technical weaknesses. The leading cryptocurrency, along with the broader market, experienced a sell-off over the weekend as some traders searched for signals ahead of a busy week to determine their positions.
More: How Bitcoin Performed this Week?
Altcoins in the Red
BTC dropped by 4.8% in the past 24 hours, trading just above $58,500 during the early hours of Monday, while Ether (ETH) lost 3.5%. The CoinDesk 20 Index, which includes the top 20 cryptocurrencies most actively traded on recognized exchanges, fell by 2.2% at the time of writing.
According to market data, U.S. exchange-traded funds (ETFs) tracking these assets also saw outflows. BTC ETFs lost $89 million, while ETH ETFs witnessed outflows of $15.7 million.
The altcoins continued their downward trend as well. SOL from Solana and Toncoin (TON) led the losses among major currencies, each dropping by 7%. BNB from BNB Chain shed 3%, Dogecoin (DOGE) fell by 6%, and both ADA from Cardano and XRP were down by 5%.
Tokens from blockchain projects like Aptos (APT), Arbitrum (ARB), and the metaverse platform The Sandbox (SAND) also took a hit, each falling by 7% ahead of token unlocks this week. A total of $120 million worth of tokens, belonging to team members and early investors, is set to be released over the coming days.
Get Ready for a Financially Busy Week
Traditional market events tend to drive cryptocurrency prices as they reveal spending behavior and the overall state of the economy. This week is packed with upcoming market releases that could put significant pressure — positive or negative — on the entire crypto market.
On Tuesday, Australia will release its consumer confidence data, which tracks sentiments around household finances, and Japan will unveil its Producer Price Index (PPI), a measure of price changes for goods sold within the corporate sector.
Wednesday brings the Consumer Price Index (CPI) reports for July from both the UK and the US. Thursday will see retail giants Alibaba Group and Walmart release their earnings reports. And on Friday, Hong Kong and Taiwan will update their Gross Domestic Product (GDP) figures.
Cryptocurrency markets, lacking a clear anchor, are constantly subject to position adjustments based on traditional financial markets, one analyst noted. Augustine Fan, Head of Analytics at SOFA.org, believes that cryptocurrency prices are likely to remain range-bound with a bias toward the weaker side.
Fan argues that despite some recent recovery, the market still faces challenges like "technical damage" and "dampened sentiment." Analytical tools, such as on-chain cost models and MVRV (Market Value to Realized Value) ratios, indicate that more downward pressure or volatility could be on the horizon, especially as we approach the annual Jackson Hole economic symposium, which could affect future economic and market conditions.
If luck is on our side and the news is favorable, it could push prices higher, as investors are expected to place more bets on riskier assets like tech stocks or cryptocurrencies. On the flip side, negative indicators will likely lead to a decline in assets as investors shift toward safer bets.
Richard Adrian
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