As we navigate a turbulent market, the leading cryptocurrencies are experiencing a significant downturn in anticipation of Monday's US equities market opening. Investors are left contemplating whether the recent recovery seen post-selloff last week indicates a sustainable rebound or merely a temporary reprieve before further declines ensue. Bitcoin, the flagship cryptocurrency, has seen a notable decline of approximately 4.7% over the past 24 hours, trading at around $58,204.
Meanwhile, Ethereum has also faced challenges, with a reduction of about 3.3%, currently valued at $2,594. Solana, often projected as the next cryptocurrency poised to support US-listed exchange-traded funds (ETFs), has plummeted by roughly 7.4%, adjusting to a price of $144.04. The cryptocurrency market capitalization on a global scale has contracted by 4.5%, settling at $2.05 trillion.
The CoinDesk Market Index, which diligently tracks the movement of digital assets, recorded a decline of more than 4.8% within the last 24-hour window. A recent note from LMAX Digital has shed light on the current sentiment among crypto investors, stating, "Crypto investors are trying to figure out if we've bottomed out following last Monday's panic selloff, or if we're just seeing a corrective bounce ahead of another bout of weakness." As we prepare for trading on Monday, the performance of spot price bitcoin ETFs reflects a somber outlook, with notable declines led by the Franklin Bitcoin ETF (EZBC), which has dropped about 2.6%, and the iShares Bitcoin Trust (IBIT), down around 1.7%.
Conversely, some Ethereum-focused ETFs are showing resilience, with the 21shares Core Ethereum ETF (CETH) climbing by 1% and the iShares Ethereum Trust ETF (ETHA) appreciating nearly 3%. During the premarket phase, bitcoin mining stocks have generally faced declines, with Iris Energy (IREN) retracting approximately 1% and HIVE Digital Technologies (HIVE) dropping over 2.4%.
Nevertheless, the Valkyrie Bitcoin Miners ETF (WGMI), which tracks miners and associated stocks, has managed to exhibit strength, firming up by more than 2%. This week’s key economic reports are poised to captivate market attention, starting with the producer price index reading for July, scheduled for release at 8:30 am ET on Tuesday.
The consumer price index for the previous month will follow on Wednesday, providing additional insights into inflation trends. On Thursday, the Census Bureau is set to unveil the retail sales report for July alongside weekly jobless claims data, while Friday will feature the University of Michigan's preliminary consumer sentiment data for August, anticipated to yield crucial signals about consumer confidence and economic outlooks..