Cryptocurrency markets fell on Monday amid investor concerns that Bitcoin is about to be hit by renewed wholesale selling pressure.
Over the past 24 hours, Bitcoin (BTC) has suffered a 3% drop to $58,172, Ethereum (ETH) has fallen 2.9% to $2,584, Polkadot (DOT) and Solana (SOL) have also slipped 2%.
While most cryptocurrencies saw declines, Conflux (CFX) stood out with a gain of 4.5%, making it the best performing cryptocurrency in the top 100. Toncoin (TON) followed with 3%, and Monero (XMC) also rose 4%. On the downside, Dogwifhat (WIF) was the worst performer, plunging 7%. Helium (HNT) fell 6%, and Ondo (ONDO) fell 5.4%.
The U.S. government transferred nearly $600 million worth of bitcoin to Coinbase on Aug. 15, according to Arkham Intelligence. That likely means the bitcoin is being sold or will be sold, Scott Johnsson, general counsel at Van Buren Capital, told X.
Data from 21.co shows that the US government holds 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 operated Bitfinex, and 51,326 BTC seized from James Zhong, who hacked Silk Road.
Alternative.me’s Crypto Fear and Greed Index, which measures market sentiment on a scale of 0 to 100, currently stands at 28, indicating “fear.”
Over the past 24 hours, 39,835 traders were liquidated, totaling $95.01 million in liquidations, including $18 million in long Bitcoin positions, CoinGlass reported.
Bitcoin ETFs Outperform Ethereum ETFs
According to data from Farside Investors, Bitcoin spot exchange-traded funds (ETFs) saw a weekly net inflow of $32.4 million last week, from August 12 to August 16. In contrast, Ethereum ETFs saw net outflows of $14.1 million during that period.
Grayscale’s Ethereum Trust (ETHE) had a zero outflow day on August 12, however, it still saw 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 saw $4.2 million in inflows, while Solana faced a record outflow of $39 million, reflecting a decline in trading volumes for memecoins that Solana relies heavily on.
The Dollar and the Real Estate Market
The U.S. dollar weakened against the Japanese yen after disappointing housing data. The dollar fell 0.96% to 147.87 yen, off a two-week high of 149.40. The latest data from the U.S. Census Bureau and the Department of Housing and Urban Development show a decline in new home construction activity for July 2024.
In traditional markets, the S&P 500 and Nasdaq gained less than 1% as investors awaited Federal Reserve Chairman Jerome Powell’s speech on Friday for more information on potential rate cuts. The minutes of the Fed’s latest meeting are also due out Wednesday.
