Coinspeaker Bitcoin Sinks Below $58K as Crypto Market Faces Broad Selloff
The crypto market experienced a weekend selloff ahead of a data-heavy week in traditional markets, with Bitcoin (BTC) leading the charge downward. Over the past 24 hours, Bitcoin has sunk 4.83%, trading just above $58,400 as of Monday morning in Asia, according to CoinMarketCap.
Photo: CoinMarketCap
The downward trend extends to the broader crypto market, with Ethereum (ETH) also falling 4.45% in the last 24 hours. Further downward pressure on specific tokens is expected in the coming week due to scheduled token unlocks. Blockchains Aptos (APT), Arbitrum (ARB), and metaverse platform The Sandbox (SAND) are all set to release over $120 million worth of tokens cumulatively.
Adding to the bearish sentiment, US-listed exchange-traded funds (ETFs) tracking digital assets witnessed significant outflows on Friday. According to market data, BTC ETFs hemorrhaged $89 million, while ETH ETFs saw $15.7 million in outflows.
Traditional Market Cues May Impact Bitcoin
While some market analysts predict a further decline for Bitcoin in the coming weeks based on technical weakness, others point to potential catalysts from traditional markets.
“Crypto prices will likely remain rangebound with a downward bias,” Augustine Fan, head of insights at SOFA.org, told CoinDesk in a Telegram message. However, Fan acknowledges that upcoming economic data releases could provide upward pressure.
“The technical damage and negative sentiment remain, with on-chain cost models and MVRV models suggesting a possible further shakeout before Jackson Hole,” Fan added, referring to the annual economic symposium held by the Federal Reserve Bank of Kansas City.
Fan further highlighted the lack of a clear direction in crypto markets, leaving them susceptible to continued adjustments by investors based on traditional market data. He noted the muted inflows observed in BTC and ETH ETFs over recent trading sessions.
Global Data Trends Set to Shift Markets
This week promises a flurry of economic data releases that could significantly impact crypto prices. Both the UK and the US will release their Consumer Price Index (CPI) figures on Wednesday. This data provides crucial insights into inflation levels, which can influence investor sentiment towards riskier assets like cryptocurrencies.
Earlier in the week, on Tuesday, investors will be watching Australia’s consumer confidence data, which gauges public perception of their financial well-being. Additionally, Japan’s Producer Price Index (PPI) is scheduled for release on the same day, offering a glimpse into price changes within the Japanese business sector.
Later in the week, retail giants Alibaba Group and Walmart will report their earnings on Thursday. Finally, Hong Kong and Taiwan are set to publish updated Gross Domestic Product (GDP) figures on Friday.
next
Bitcoin Sinks Below $58K as Crypto Market Faces Broad Selloff
