According to U.Today, Bitcoin (BTC), the largest cryptocurrency by market capitalization, experienced a significant sell-off during Sunday's trading session. This downward trend continued into Monday, with Bitcoin reaching an intraday low of $57,663. At the time of writing, BTC had fallen 2.09% over the past 24 hours to $59,450, down from its high of $62,755 on Thursday.

On-chain analytics firm Lookonchain noted that institutions appeared to have temporarily halted their Bitcoin purchases, contributing to the price decline. In a tweet, Lookonchain stated, 'Institutions seem to have temporarily stopped buying, and the price of BTC dropped 4.5% today. We noticed that institutions stopped receiving USDT from Tether Treasury and transferring it to exchanges 2 days ago.' This observation was supported by on-chain data, which suggested that Bitcoin's sharp rebound to $62,755 in Thursday's trading session might have triggered profit-taking.

Another on-chain analytics firm, Santiment, also weighed in, noting that Bitcoin's brief surge above $62,600 represented a 25% increase in just over three days. Santiment added that the sudden excitement over potential BTC prices reaching $70,000-$75,000 might be a top signal for the cryptocurrency.

The drop in Bitcoin's price led to a broader sell-off in the crypto market over the weekend, as traders sought to adjust their positions ahead of a busy week. Investors are particularly focused on upcoming inflation data, with the July producer price index due on Tuesday and the consumer price index for the same month scheduled for release on Wednesday. These key economic indicators are expected to provide insights into the condition of the U.S. economy.

Investors are closely monitoring the inflation data amid ongoing concerns about whether the U.S. economy might enter a recession and whether the Federal Reserve should have started decreasing interest rates sooner to avoid a hard landing. During its last meeting, the Fed left interest rates steady but indicated that a rate cut in September was possible, depending on economic data related to inflation and labor market conditions.