Crypto markets slid on Monday on investor concerns Bitcoin is about to get hit with more wholesale sell-pressure.
In the past 24 hours, Bitcoin (BTC) has suffered a 3% drop to $58,172, Ethereum (ETH) sank 2.9% to $2,584, Polkadot (DOT) and Solana (SOL) also slipped 2%.
While most cryptocurrencies experienced declines, Conflux (CFX) stood out with a 4.5% gain, making it the best-performing top 100 cryptocurrency. Toncoin (TON) followed with a 3%, and Monero (XMC) also rose by 4%. On the downside, Dogwifhat (WIF) was the worst performer, plunging 7%. Helium (HNT) fell by 6%, and Ondo (ONDO) dropped by 5.4%.
The U.S. government transferred nearly $600 million worth of Bitcoin to Coinbase on Aug. 15, according to Arkham Intelligence. This likely means the Bitcoin are either sold or will be sold, Scott Johnsson, general counsel at Van Buren Capital, posted on X.
Data from 21.co shows the US government holding 203,222 BTC worth $11.9 billion. The stash includes 69,369 BTC seized from Silk Road, 94,643 BTC seized from the hacker who exploited Bitfinex, and 51,326 BTC seized from James Zhong — who hacked Silk Road.
The ‘Crypto Fear and Greed Index’ by Alternative.me, which gauges market sentiment on a scale from 0 to 100, currently stands at 28, indicating “fear.”
Over the last 24 hours, 39,835 traders were liquidated, amounting to $95.01 million in total liquidations, with $18 million of that in long Bitcoin positions, reported CoinGlass.
Bitcoin ETFs Outperform Ethereum ETFs
According to data from Farside Investors, spot Bitcoin exchange-traded funds (ETFs), recorded a weekly net inflow of $32.4 million last week, from Aug. 12 to Aug. 16. In contrast, Ethereum ETFs logged net outflows amounting to $14.1 million, in that time.
Grayscale’s Ethereum Trust (ETHE) had one day of zero outflow on Aug. 12, however, it still recorded outflows totaling $118.1 million for the entire week.
Meanwhile, James Butterfill, head of research at CoinShares, reported minor inflows into digital asset investment products last week, totaling $30 million. Ethereum recorded $4.2 million in inflows, while Solana faced a record-high outflow of $39 million, reflecting a drop in trading volumes of memecoins that Solana heavily relies on.
The Dollar and Housing Market
The U.S. dollar weakened against the Japanese yen after disappointing housing data. The dollar fell by 0.96% to 147.87 yen, following a two-week high of 149.40. The latest data from the U.S. Census Bureau and the Department of Housing and Urban Development reveals a decline in new residential construction activity for July 2024.
In traditional markets, the S&P 500 and Nasdaq gained less than 1% as investors await Friday’s speech by Federal Reserve Chair Jerome Powell for more insight into potential rate cuts. The minutes from the Fed’s latest meeting are also due for release on Wednesday.
