Bitcoin Approaches $58K Amid Market Decline Ahead of Data-Heavy Week

According to one analyst, the cryptocurrency markets are drifting without a solid foundation and remain vulnerable to further shifts influenced by traditional financial markets.

Over the weekend, a decline in Bitcoin (BTC) triggered a broader selloff across the cryptocurrency market as traders sought signals to guide their positioning for a busy week ahead.

BTC fell by 4.8% in the last 24 hours, trading slightly above $58,500 early Monday morning in Asia, according to CoinDesk Indices.

The overall crypto market, tracked by CoinDesk 20 (CD20), dropped 5.2%, with Ether (ETH) decreasing by 3.5%.

Additionally, U.S.-listed exchange-traded funds (ETFs) tracking these assets experienced outflows on Friday, with BTC ETFs losing $89 million and ETH ETFs seeing $15.7 million in withdrawals, according to market data.

Solana’s SOL and Toncoin (TON) led the major losses, each declining by 7%. BNB Chain’s BNB fell by 3%, while Dogecoin (DOGE) dropped 6%. Cardano’s ADA and XRP (XRP) both slid 5%.

Additionally, tokens from blockchains such as Aptos (APT), Arbitrum (ARB), and The Sandbox’s SAND experienced declines of up to 7% ahead of upcoming unlocks this week.

These unlocks will release over $120 million worth of tokens into the market, primarily from team members and early investors, according to data.

Some market observers have cautioned about a potential further decline in Bitcoin (BTC) in the coming weeks due to technical weaknesses.

However, they also noted that upcoming releases from traditional markets could exert upward pressure. “Crypto prices are likely to remain within a range but may lean towards weakness,” Augustine Fan, head of insights at SOFA.org, told CoinDesk via Telegram.

“Despite this, ongoing technical damage and negative sentiment persist, with on-chain cost models and MVRV models indicating a possible shakeout before Jackson Hole.”

“Crypto markets are currently directionless and vulnerable to further position adjustments. We’ve observed continued low ETF inflows for BTC and ETH in recent sessions,” Fan noted.

This week, both the U.K. and the U.S. will release July’s Consumer Price Index (CPI) data on Wednesday. On Tuesday, Australia’s consumer confidence report, which gauges sentiment about personal finances, and Japan’s Producer Price Index (PPI), which measures price changes in corporate goods, are set to be published.

Later in the week, major retailers Alibaba Group and Walmart will report their earnings on Thursday, while Hong Kong and Taiwan will release updated GDP figures on Friday.

Traditional market events often impact cryptocurrency prices, as they provide insights into spending behaviors and overall economic conditions.

Positive reports typically boost prices as investors become more willing to invest in riskier assets like technology stocks or cryptocurrencies, whereas disappointing data can lead to declines as investors seek safer investments.