The crypto market faced a sharp downturn over the weekend, led by a slide in Bitcoin (BTC) that triggered widespread selling across major cryptocurrencies. With markets lacking a clear direction, traders are closely watching traditional finance markets for cues on positioning.
Bitcoin and Ethereum ETFs Experience Outflows
Bitcoin dropped 4.8% in the past 24 hours, trading just above $58,500 as of Monday morning in Asia. Ether (ETH) also suffered, losing 3.5%. U.S.-listed exchange-traded funds (ETFs) tracking these assets reflected the broader market’s uncertainty, with BTC ETFs seeing $89 million in outflows, while ETH ETFs recorded $15.7 million in outflows.
Major Cryptos Follow Suit
The selloff extended beyond Bitcoin and Ethereum. Solana’s SOL and Toncoin (TON) led the losses among major cryptocurrencies, each sliding 7%. Binance’s BNB dropped 3%, Dogecoin (DOGE) fell by 6%, and both Cardano’s ADA and XRP declined by 5%.
Additionally, tokens from blockchains Aptos (APT), Arbitrum (ARB), and The Sandbox’s SAND saw drops of up to 7%. These declines were influenced by upcoming token unlocks that are expected to release over $120 million worth of these tokens into the market, creating potential selling pressure.
Traditional Market Events to Watch
This week, key traditional market events could influence crypto prices. Both the U.K. and the U.S. will release July’s Consumer Price Index (CPI) readings on Wednesday. Australia’s consumer confidence and Japan’s Producer Price Index (PPI) are set for release on Tuesday. Later in the week, major companies like Alibaba Group and Walmart will report earnings, while Hong Kong and Taiwan will publish updated GDP figures on Friday.
These traditional market releases often impact crypto prices, as they provide insights into spending behavior and the broader economy. Positive economic data tends to boost investor confidence in riskier assets like cryptocurrencies, while disappointing data could drive investors toward safer options, potentially leading to further declines in crypto markets.
