Bitcoin (BTC) Sell-Off Continues as Institutions Halt Buying: What's Next for the Crypto Market?
Bitcoin (BTC), the leading cryptocurrency, experienced a sell-off during Sunday's trading session, with prices dropping to an intraday low of $57,663 on Monday. Currently, BTC is down 2.09% in the past 24 hours, trading at $59,450, a decrease from its recent high of $62,755.
On-chain analytics firm Lookonchain reported that institutions have temporarily stopped buying BTC, contributing to the price decline. This halt in institutional buying coincided with a 4.5% drop in BTC price.
The sudden surge in Bitcoin to $62,755 last week led to profit-taking, according to on-chain data. Analysts at Santiment noted that the excitement over potential prices of $70,000-$75,000 could signal a market top for BTC.
The broader crypto market experienced a sell-off following Bitcoin's decline, as traders adjusted their positions ahead of key economic releases this week. Investors are awaiting new inflation data, including the July producer price index and consumer price index, to gauge the state of the U.S. economy.
Recent concerns about a possible recession and the Federal Reserve's interest rate policy have put additional pressure on investors. The Fed has hinted at a possible rate cut in September, depending on economic indicators.
In conclusion, the recent sell-off in Bitcoin and the broader crypto market, coupled with uncertainties about the economy and inflation data, highlight the importance of staying informed and making strategic investment decisions. Keep an eye on market trends and upcoming economic releases to navigate these volatile times effectively.