Key Points
- The cryptocurrency market, led by Bitcoin, experiences a significant drop over the weekend.
- Traditional market activities and upcoming economic data releases may influence the cryptocurrency market.
The cryptocurrency market saw a significant decline over the weekend, with Bitcoin (BTC) leading the decline. Over the last 24 hours, Bitcoin’s value has dropped by 4.83%, trading just over $58,400 on Monday morning in Asia, according to CoinMarketCap.
The Broader Crypto Market Follows Suit
The downward trend was not limited to Bitcoin; Ethereum (ETH) also experienced a 4.45% drop in the last 24 hours. Further drops in specific tokens are predicted in the upcoming week due to scheduled token unlocks. Blockchains Aptos (APT), Arbitrum (ARB), and metaverse platform The Sandbox (SAND) are all set to release over $120 million worth of tokens cumulatively.
Adding to the bearish sentiment, US-listed exchange-traded funds (ETFs) that track digital assets saw significant outflows on Friday. Market data shows that BTC ETFs saw an outflow of $89 million, while ETH ETFs experienced outflows of $15.7 million.
Traditional Market Influences
While some market analysts predict further declines for Bitcoin in the upcoming weeks due to technical weakness, others point to potential catalysts from traditional markets. Augustine Fan, head of insights at SOFA.org, said in a Telegram message, “Crypto prices will likely remain rangebound with a downward bias,”. However, he also acknowledged that upcoming economic data releases could provide upward pressure.
Fan further noted the lack of a clear direction in crypto markets, leaving them open to continued adjustments by investors based on traditional market data. He highlighted the muted inflows observed in BTC and ETH ETFs over recent trading sessions.
Global Data Trends and Crypto Markets
The upcoming week promises a flurry of economic data releases that could significantly impact crypto prices. Both the UK and the US will release their Consumer Price Index (CPI) figures on Wednesday. This data provides crucial insights into inflation levels, which can influence investor sentiment towards riskier assets like cryptocurrencies.
Earlier in the week, on Tuesday, investors will be watching Australia’s consumer confidence data, which gauges public perception of their financial well-being. Additionally, Japan’s Producer Price Index (PPI) is scheduled for release on the same day, offering a glimpse into price changes within the Japanese business sector.
Later in the week, retail giants Alibaba Group and Walmart will report their earnings on Thursday. Finally, Hong Kong and Taiwan are set to publish updated Gross Domestic Product (GDP) figures on Friday.
