According to CoinDesk: Bitcoin (BTC) and the broader crypto market saw a significant selloff over the weekend, with BTC hovering just above $58,500, down 4.8% in the past 24 hours. This decline comes as traders brace for a busy week of economic data releases that could influence market positioning.
The selloff was not limited to Bitcoin; the broader crypto market tracked by CoinDesk 20 (CD20) fell 5.2%, with Ether (ETH) dropping 3.5%. Major altcoins also took a hit, with Solana’s SOL and Toncoin (TON) leading the losses at 7%, followed by Dogecoin (DOGE) at 6%, and Cardano’s ADA and XRP each sliding 5%. BNB Chain’s BNB was down 3%.
ETF Outflows and Upcoming Token Unlocks
U.S.-listed exchange-traded funds (ETFs) tracking Bitcoin and Ethereum recorded outflows on Friday, with BTC ETFs losing $89 million and ETH ETFs seeing $15.7 million in outflows, signaling a cautious sentiment among investors.
Adding to the market pressure, tokens of blockchains such as Aptos (APT), Arbitrum (ARB), and The Sandbox’s SAND are expected to face significant selling pressure. These tokens are scheduled for major unlocks this week, which will release more than $120 million worth of tokens into the open market. The unlocked tokens primarily belong to project teams and early investors.
Market Outlook: Caution Ahead of Economic Data Releases
Some analysts warn that Bitcoin could face further declines in the coming weeks, citing technical weaknesses in the market. Augustine Fan, head of insights at SOFA.org, noted that "crypto prices will likely be rangebound with a bias to the weak side," and pointed out that on-chain cost models and MVRV (Market Value to Realized Value) models suggest potential further shakeouts before the upcoming Jackson Hole symposium.
Fan also highlighted the ongoing lack of clear direction in the crypto markets, which remain vulnerable to position adjustments influenced by traditional finance markets. "We continue to see muted ETF inflows for BTC and ETH over the past few sessions," Fan added.
Key Economic Data to Watch This Week
The upcoming week will be crucial for both traditional and crypto markets, with several key economic indicators set to be released:
Wednesday: The U.S. and U.K. will release their Consumer Price Index (CPI) readings for July, which will provide insights into inflation trends.
Tuesday: Australia will release its consumer confidence data, and Japan will publish its Producer Price Index (PPI), a measure of corporate sector price developments.
Thursday: Retail giants Alibaba Group and Walmart will release their earnings reports.
Friday: Hong Kong and Taiwan will publish updated Gross Domestic Product (GDP) figures.
These events are expected to impact crypto prices as they reveal consumer spending behaviour and the overall state of the global economy. Positive data could lead to a rally in riskier assets like cryptocurrencies, while disappointing figures might drive prices lower as investors seek safer investments.
