The weekend saw a significant selloff in the BTC market, with prices trading slightly above $58,500, down 4.8% in the last 24 hours. This decline had a ripple effect on the broader crypto market, with many assets experiencing losses.
U.S.-listed Exchange-Traded Funds (ETFs) Record Outflows
On Friday, U.S.-listed ETFs tracking these assets recorded outflows. BTC ETFs lost $89 million, while ETH ETFs saw $15.7 million in outflows, according to market data. This trend suggests that investors may be reevaluating their positions ahead of a busy week.
Crypto Market Selloff Wider Than Just BTC
The decline in bitcoin (BTC) led to a wider crypto market selloff over the weekend as some traders looked for cues ahead of a busy week to determine positioning. CoinDesk Indices data shows that BTC sank 4.8% in the past 24 hours, trading just above $58,500 in Asian morning hours on Monday.
CoinDesk 20 (CD20) Falls 5.2%, Ether (ETH) Loses 3.5%
The broader crypto market tracked by CoinDesk 20 (CD20), fell 5.2%. Ether (ETH) lost 3.5% in the same period, further contributing to the overall decline.
Solana’s SOL and Toncoin (TON) Lead Losses Among Majors
Solana’s SOL and toncoin (TON) led losses among majors with a 7% slide. BNB Chain’s BNB lost 3%, dogecoin (DOGE) dropped 6%, while Cardano’s ADA and xrp (XRP) slid 5%.
Tokens of Blockchains Aptos (APT), Arbitrum (ARB), and The Sandbox’s SAND Drop Up to 7%
Elsewhere, tokens of blockchains Aptos (APT), Arbitrum (ARB), and metaverse The Sandbox’s SAND dropped as much as 7% ahead of unlocks in the week, which will cumulatively release more than $120 million worth of the tokens in the open market, data shows. These tokens belong to the team and early investors.
Upcoming Major Token Unlocks
| Token | Unlock Date |
| — | — |
| Aptos (APT) | August 8, 2023 |
| Arbitrum (ARB) | August 10, 2023 |
| The Sandbox’s SAND | August 12, 2023 |
Market Watchers Warn of Further BTC Decline
Some market watchers warned of a further BTC decline in the coming weeks citing technical weakness, but pointed to upcoming traditional market releases that could provide upward pressure.
"Crypto prices will likely be rangebound with a bias to the weak side," Augustine Fan, head of insights at SOFA.org told CoinDesk in a Telegram message. "However, the technical damage and sentiment drag remain, with on-chain cost models and MVRV models suggesting further possible shake-out before Jackson Hole."
Lack of Clear Anchor Contributes to Position Adjustments
Crypto markets lack a clear anchor and are susceptible to continued position adjustments. We continue to see muted ETF inflows for BTC and ETH over the past few sessions, Fan added.
Traditional Market Releases This Week
| Release Date | Event |
| — | — |
| Tuesday (July 25) | Australia’s consumer confidence, which tracks sentiment around family finances, and Japan’s Producer Price Index (PPI), a measure of price developments of goods traded within the corporate sector. |
| Wednesday (July 26) | The U.K. and the U.S. will release July’s Consumer Price Index (CPI) readings on Wednesday. |
| Thursday (July 27) | Retail behemoths Alibaba Group and Walmart will release earnings on Thursday. |
| Friday (July 28) | Hong Kong and Taiwan will publish updated gross domestic product (GDP) on Friday. |
Traditional Market Events Influence Crypto Prices
Traditional market events tend to move crypto prices as they reveal spending behavior and the state of the general economy. Favorable releases tend to sway prices upward as investors are expected to bet more on riskier assets, such as technology stocks or cryptocurrencies, while an earnings or data miss tends to drive assets lower, as investors shift to safer bets.
