According to one analyst, cryptocurrency markets are prone to ongoing position adjustments based on traditional finance markets because they lack a distinct anchor.
Over the weekend, a decline in bitcoin (BTC) sparked a selloff in the broader cryptocurrency market as traders sought signals ahead of a busy week to decide where to position themselves.
According to data, Bitcoin fell 4.8% on the previous day while trading just above $58,500 on Monday during Asian morning hours. The CoinDesk 20 (CD20) cryptocurrency market had a 5.2% decline, and 3.5% was lost by Ether (ETH).
ETFs and Major Tokens: Analyzing the Impact
Exchange-traded funds (ETFs) that follow the assets and are listed in the US saw withdrawals on Friday. Market data shows that ETH ETFs suffered outflows of $15.7 million, while BTC ETFs lost $89 million.
With a 7% decline, Solana’s SOL and Toncoin (TON) lead losses among majors. Dogecoin (DOGE) fell 6%, Cardano’s ADA and XRP fell 5%, and BNB Chain’s BNB fell 3%.
Tokens of the blockchains Aptos (APT), Arbitrum (ARB), and Metaverse are found elsewhere. Data indicates that Sandbox’s SAND fell as much as 7% ahead of the week’s unlocks, which will release tokens valued at over $120 million on the open market together. The team and the first investors own these coins.
Citing technical weakness, several market observers cautioned of a potential BTC decrease in the following weeks, but they also mentioned impending conventional market releases that may exert upward pressure.
Analyst Insights: Augustine Fan’s Perspective
Augustine Fan, Head of Insights at SOFA.org, stated, “Crypto prices will likely be rangebound with a bias to the weak side.” “On-chain cost models and MVRV models suggest further possible shake-out before Jackson Hole, but the technical damage and sentiment drag remain.”
“Crypto markets are prone to ongoing position shifts and lack a distinct anchor. Over the previous several sessions, we have continued to observe subdued ETF inflows for Bitcoin and Ethereum,” Fan stated.
Traditional Market Influences: Key Economic Releases Ahead
This Wednesday, the Consumer Price Index (CPI) for July will be released in the United States and the United Kingdom. The releases of Australia’s consumer confidence, which gauges attitudes on family finances, and Japan’s Producer Price Index (PPI), which records changes in the prices of items exchanged in the corporate sector, are planned for Tuesday.
Retail giants Alibaba Group and Walmart are scheduled to report their profits on Thursday later this week. Taiwan and Hong Kong will reveal their revised GDP figures on Friday.
Crypto prices are often influenced by traditional market events since they provide insight into consumer spending patterns and the overall health of the economy. Positive news tends to push prices up because investors are likely to wager more on riskier assets, such as tech stocks or cryptocurrencies; on the other hand, negative news tends to push assets lower because investors switch to safer bets.