Cryptocurrency Prices Sink: Bitcoin, Ethereum, Dogecoin Sink Again
The cryptocurrency market continues to experience a downturn, with leading cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin sinking further on Sunday. The market has been under stress due to planned Bitcoin sell-offs by defunct cryptocurrency exchange Mt.Gox and potential sales by the German government. The slump in the last 24 hours resulted in $202 million in liquidations, with $171 million in long bullish bets getting wiped out.
Bitcoin fell below $56,000 again, following an optimistic rally that saw the digital asset rise well beyond $58,000 the night before. Ethereum also dropped below $3,000 after a temporary respite. The Cryptocurrency Fear & Greed Index continued to be engulfed in "Fear," with a reading of 28, the lowest since January 2023.
Analyst Rekt Capital noted that Bitcoin needs to hold $56,750 to establish a range, failing which it may break to the downside. Another trader, Kevin, ruled out an imminent altcoin rally due to Bitcoin's negative momentum.
The global cryptocurrency market cap stands at $2.04 trillion, following a 4.51% drop in the last 24 hours. Stock futures traded lower Sunday night, with the Dow Jones Industrial Average Futures slipping 0.14% as of 8:30 p.m. EDT. Futures tied to the S&P 500 fell 0.14%, while Nasdaq 100 Futures were also down 0.14%.
This week, investors will seek cues from key inflation data, such as the consumer price index and producer price index, to predict the Federal Reserve's next steps. According to CME FedWatch, investors anticipate an interest rate cut during September's FOMC meeting.