The crypto market ends in corrections after last week’s hint at recovery as investors gear up for a busy week.
Bitcoin Ticks Down to $58,000, Alts Following The Trend
Bitcoin (BTC) has experienced a selloff during the weekend that took it down 4.8% in the last 24 hours. At the writing time, BTC is trading slightly below $60,000, having recovered from the $58,500 weekend price range.
BTC/USDT 1D chart. Source: WhiteBIT TradingView
In the meantime, Lookonchain data revealed that institutional investors stopped purchasing Tether (USDT) two days ago. Since USDT indicates a strong correlation with Bitcoin, this tendency could be the reason for BTC’s downslide.
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Institutions seem to have temporarily stopped buying, and the price of $BTC dropped 4.5% today!
We noticed that institutions stopped receiving $USDT from #TetherTreasury and transferring it to exchanges 2 days ago.https://t.co/0XKiPmjJed pic.twitter.com/NRFkp4Vqan
— Lookonchain (@lookonchain) August 12, 2024
Investor’s behavior marks the market’s reluctance before key macroeconomic updates. Both the U.S. and the U.K. are to release July’s Consumer Price Index (CPI) readings on Wednesday, August 14. What is more, Japan’s Producer Price Index (PPI) is scheduled for Tuesday’s release, while Hong Kong and Taiwan will publish updated gross domestic product (GDP) data on Friday.
The economic metrics are crucial drivers of the crypto market dynamics. Namely, a previous week, Bitcoin suffered from a better-than-expected U.S. jobs report and Bank of Japan interest rate increase, which sparked fears that the U.S. economy was headed in the wrong direction.
The altcoin market also followed Bitcoin’s selloff. The total market capitalization of the crypto market went down 4.82% in the recent 24 hours.
Cryptocurrency market’s total market capitalization. Source: TradingView
A majority of tokens recorded slight downticks. Solana (SOL) and Toncoin (TON) led losses with a 7% price decrease, with the latter one recovering to $6.5 throughout the day.
TON/USDT 4h chart. Source: WhiteBIT TradingView
The Memecoin market has also followed the trend. According to CoinGecko data, the memecoins’ total market cap has decreased by 1.4%, as Dogecoin (DOGE) dropped 6%, dogwifhat (WIF) decreased 7%, and Pepe (PEPE) has shown a 5.3% slump.
PEPE/USDT 1D chart. Source: WhiteBIT TradingView
As the market remains extremely volatile, traders should take all the macroeconomic updates into account to weather this storm.
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Paul Osadchuk
Paul Osadchuk is a digital journalist specializing in cryptocurrency and Web3 topics. He writes for GNCrypto, Cryptoslate, and Foresight News EN, and maintains analytical blogs on TradingView, Binance Square, and CoinMarketCap. With over five years of experience in marketing and PR for crypto and Web3 companies, he has gained deep industry insight and expertise in crypto trading.