In a significant downturn, the largest cryptocurrencies have experienced a marked decline ahead of the opening of US equities on Monday, as global stock markets faced a notable selloff. This shift saw investors retreat from riskier financial assets, turning instead to the perceived safety offered by bonds due to escalating fears of a potential US recession. Bitcoin, the leading cryptocurrency by market capitalization, saw its value sharply decrease by 13.9% within a 24-hour period, bringing its trading price down to $52,241.
Meanwhile, Ethereum, the second-largest cryptocurrency, suffered an even steeper decline of approximately 21.1%, landing at $2,297. Solana (SOL), recognized as the fifth-biggest cryptocurrency, encountered a substantial drop exceeding 17%, with its price resting at $118.83 at the time of reporting. As a result of these downturns, the total global cryptocurrency market capitalization fell by more than 15.1%, now standing at approximately $1.82 trillion.
The CoinDesk Market Index also reflected this bearish sentiment, down by more than 15.2% over the past 24 hours. The Bureau of Labor Statistics released its jobs report for July on Friday, revealing figures that did not meet analysts’ expectations, thereby intensifying recession concerns across various sectors. As traders prepared for Monday’s market activities, the performance of spot price Bitcoin ETFs indicated a downward trend.
Among these, the WisdomTree Bitcoin Fund (BTCW) reported a decrease of 17.3%, while the Franklin Bitcoin ETF (EZBC) faced a 17% fall. Overall, the group's eleven ETFs encountered a significant total outflow of $237.4 million, as per data compiled by Farside Investors. Similarly, Ethereum ETFs were not exempt from the downturn, with leading entities such as 21shares Core Ethereum ETF (CETH) and Bitwise Ethereum ETF (ETHW) both exhibiting a decline of 23.6%.
The combined Ethereum ETF group registered outflows totaling $54.3 million based on Farside’s analysis on Friday. Looking ahead, this week's economic announcements include the anticipated final report of the July purchasing managers' index from S&P Global, scheduled to be released at 9:45 AM ET on Monday, followed by the Institute for Supply Management’s services index for July at 10 AM.
Additionally, San Francisco Fed President Mary Daly, who is a voting member of the Federal Open Market Committee this year, is expected to deliver remarks at 5:00 PM ET. Later in the week, significant releases such as the weekly mortgage applications report and unemployment data will be made available. On Tuesday, investors will be particularly attuned to the highlights of the weekly Redbook same-store sales report, which may provide further insights into consumer behavior and market trends..