Weekend Crypto Crash: Ethereum, Solana, and Other Major Tokens Suffer Losses as BTC Declines
Weekend Crypto Crash– Bitcoin’s recent decline has set off a broader crypto market selloff over the weekend, as traders adjusted their positions ahead of a busy week filled with significant economic data and earnings reports.
Bitcoin’s Drop: 4.8% in 24 Hours
In the past 24 hours, Bitcoin (BTC) has dropped by 4.8%, trading just above $58,500 during the Asian morning hours on Monday. This downturn has affected the wider crypto market, with the CoinDesk 20 (CD20) index falling 5.2%. Ethereum (ETH) also experienced a loss, falling 3.5%.
ETF Outflows Highlight Investor Concerns
Exchange-traded funds (ETFs) tracking Bitcoin and Ethereum saw significant outflows on Friday. Bitcoin ETFs experienced a loss of $89 million, while Ethereum ETFs saw outflows of $15.7 million. This reflects growing investor caution in the current market environment.
Major Altcoins Hit Hard
Solana (SOL) and Toncoin (TON) were among the hardest hit, each dropping 7%. Binance Coin (BNB) fell 3%, Dogecoin (DOGE) saw a 6% decline, and both Cardano (ADA) and XRP (XRP) slid by 5%. These losses highlight the widespread impact of Bitcoin’s decline across the crypto sector.
Upcoming Token Unlocks to Impact Market
Tokens from blockchains such as Aptos (APT), Arbitrum (ARB), and The Sandbox (SAND) experienced declines of up to 7%. This is in anticipation of upcoming token unlocks scheduled for this week, which will release more than $120 million worth of tokens into the open market. These unlocks involve tokens held by teams and early investors.
Market Analysts Warn of Further Declines
Market analysts are cautioning that Bitcoin may face further declines in the coming weeks due to technical weaknesses. Augustine Fan, head of insights at SOFA.org, mentioned in a Telegram message that crypto prices might remain range-bound with a weak bias. He noted that technical damage and sentiment issues could lead to further shakeouts before the Jackson Hole symposium.
Economic Data and Earnings Reports Ahead
This week is packed with important economic data releases. The U.K. and U.S. will publish their July Consumer Price Index (CPI) readings on Wednesday, while Australia’s consumer confidence and Japan’s Producer Price Index (PPI) are set for Tuesday. Additionally, major retailers Alibaba Group and Walmart will release their earnings on Thursday. Hong Kong and Taiwan will update their gross domestic product (GDP) figures on Friday.
Traditional market events can significantly influence crypto prices by revealing spending behaviors and overall economic conditions. Positive economic reports generally lead to higher crypto prices as investors are more likely to invest in riskier assets like cryptocurrencies. Conversely, disappointing earnings or data can push investors towards safer assets, impacting crypto valuations negatively.
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