Bitcoin nears $58K as market slips ahead of busy data week

The cryptocurrency market experienced a wave of selling over the weekend this year, with Bitcoin (BTC) trading just above $58,500, down 4.8% in the last 24 hours.

U.s.-listed exchange-traded funds (ETFs) that track these assets recorded outflows on Friday, with BTC ETFs losing $89 million and ETH ETFs losing $15.7 million.

The decline in Bitcoin (BTC) led to a sell-off in the broader cryptocurrency market over the weekend, with some traders looking for clues to position themselves ahead of a busy data week. According to data from CoinDesk Indices, BTC fell 4.8% in early Asian trading hours to just above $58,500, while the broader cryptocurrency market tracked by CoinDesk 20 (CD20) fell 5.2%. Ethereum (ETH) fell 3.5%.

U.s.-listed exchange-traded funds (ETFs) that track these assets recorded outflows on Friday. The data shows that BTC ETFs lost $89 million, while ETH ETFs lost $15.7 million.

Solana (SOL) and toncoin (TON) led the declines among the major currencies, falling 7%. BNB Chain's BNB is down 3%, DOGE is down 6%, while Cardano's ADA and XRP are down 5%.

Elsewhere, tokens from Aptos (APT), Arbitrum (ARB), and The Sandbox's SAND in the Meta-universe fell by up to 7% ahead of the upcoming unlock cycle, which will release more than $120 million worth of tokens in the sky market belonging to teams and early investors, according to the data.

Some market watchers warned that Bitcoin could fall further in the coming weeks due to technical weakness, but noted that upcoming traditional market data could put upward pressure.

"Crypto prices are likely to be range-bound and biased to the weak side," Augustin Fan, head of insights at SOFA.org, told CoinDesk in a Telegram message. "However, technical damage and sentiment drag remain, and on-chain cost models and market-to-market realization value (MVRV) models suggest further volatility ahead of Jackson Hole."

"The crypto market lacks a clear anchor point and is susceptible to position adjustments. We continue to see lower ETF inflows for BTC and ETH over the past few sessions, "Fan added.

On Wednesday, the United Kingdom and the United States will release consumer price index (CPI) data for July. Australia's consumer confidence, which tracks sentiment in household finances, and Japan's producer price index (PPI), an indicator of changes in the price of goods within the corporate sector, will be released on Tuesday.

Later in the week, retail giants Alibaba Group Holding LTD and Walmart Inc will release earnings reports on Thursday, while Hong Kong and Taiwan will release updated gross domestic product (GDP) figures on Friday.

Traditional market events often influence crypto prices because of what they reveal about consumer behavior and the overall state of the economy. Positive data typically prompts investors to bet more on riskier assets, such as technology stocks or cryptocurrencies, while poor earnings or data tends to push assets lower as investors move to safer options.