The absence of short-term catalysts is likely weighing down token prices, according to one trader.
Major cryptocurrencies experienced declines, influenced by ongoing profit-taking and significant net outflows from U.S.-listed bitcoin exchange-traded funds (ETFs) on Monday. This has put a damper on bullish sentiment.
Key Movements in Major Tokens
- Bitcoin (BTC): Dropped to nearly $66,500, erasing all gains made on Monday. It has been fluctuating around the 50-day moving average of $66,000, challenging the medium-term uptrend.
- Ether (ETH): Fell to $3,400, undoing all gains from the previous week.
- Dogecoin (DOGE) and Solana (SOL): Both saw significant losses, with DOGE and SOL dropping as much as 9% over the past 24 hours, according to CoinmarketCap.
- Ton Network (TON): Declined by 5%.
- BNB Chain (BNB): Outperformed with a smaller loss of just 1.5%.
Recent Market Influences
Last week, Bitcoin dipped below the $65,000 mark for the first time in a month. This decline was linked to ETF net outflows exceeding $500 million and the Federal Reserve’s indication of only one interest rate cut in 2024.
Expert Insights
Neil Roarty, an analyst at investment platform Stocklytics, highlighted political uncertainty as a contributing factor. Emmanuel Macron’s unexpected decision to call a snap election in France strengthened the dollar, prompting traders to exit the euro.
“A strong dollar tends to put downward pressure on Bitcoin,” Roarty explained. He noted that lower interest rates and a weaker dollar would be necessary for BTC to approach the $70,000 mark.
Ethereum and Altcoins
FxPro senior market analyst Alex Kuptsikevich noted generally bearish sentiment. Although positive developments regarding Ethereum ETFs briefly boosted ETH by over 6% last Friday, it has since lost nearly 1.5% since Monday morning.
“Ethereum’s brief recovery under optimistic ETF expectations didn’t sustain,” Kuptsikevich commented. “Increased liquidity during weekdays tends to favor bears, heightening selling interest.”
As the market navigates these challenges, traders remain cautious, closely monitoring political and economic developments that could impact future movements in the cryptocurrency sector.
