Bitcoin (BTC), the largest cryptocurrency by market capitalization, experienced a sell-off during Sunday’s trading session, leading to an intraday low of $57,663 on Monday. Currently, BTC is down 2.09% in the last 24 hours, trading at $59,450, down from its recent high of $62,755.
According to on-chain analytics firm Lookonchain, institutions have paused their buying activity, contributing to the price drop. The firm noted that institutions have stopped receiving USDT from Treasury and transferring it to exchanges, which has impacted BTC prices.
On-chain data suggests that Bitcoin’s rapid surge to $62,755 triggered profit-taking among traders. Santiment, another analytics firm, mentioned that the sudden excitement around the potential for BTC to reach $70,000-$75,000 could be a warning sign for the cryptocurrency.
The drop in Bitcoin has led to a broader sell-off in the crypto market, as traders adjust their positions ahead of key economic releases this week.
Key Releases to Watch This Week
Investors are eagerly awaiting new inflation data amid uncertainties about the U.S. economy. The July producer price index is scheduled for release on Tuesday, followed by the consumer price index for the same month on Wednesday.
Recent concerns about a possible recession in the U.S. economy and the timing of Federal Reserve interest rate cuts have added to market volatility. The Fed has hinted at a potential rate cut in September, depending on economic indicators such as inflation and labor market conditions.
As investors brace for more market turbulence, keeping an eye on economic data releases will be crucial to understanding the future direction of both the crypto market and traditional financial markets.
