U.Today – Bitcoin (BTC) Market Overview

Bitcoin (BTC), the largest cryptocurrency by market capitalization, experienced a sell-off during Sunday’s trading session. This selling continued on Monday, reaching an intraday low of $57,663.

As of the latest update, BTC was down 2.09% in the previous 24 hours, trading at $59,450, down from a high of $62,755 the previous Thursday.

Institutional Buying Patterns

According to the on-chain analytics firm Lookonchain, it appears that institutions have temporarily ceased buying BTC, contributing to the recent price decline. Lookonchain noted in a tweet:

“Institutions seem to have temporarily stopped buying, and the price of BTC dropped 4.5% today. We noticed that institutions stopped receiving USDT from Tether Treasury and transferring it to exchanges 2 days ago.”

Market Dynamics

On-chain data indicates that the rapid rebound of Bitcoin to highs of $62,755 on Thursday may have triggered profit-taking. Santiment pointed out via tweet that after Bitcoin briefly surpassed $62,600—a 25% rise in just over 3 days—average traders may have been caught off-guard.

Santiment also mentioned that the sudden excitement over potential BTC prices reaching $70,000-$75,000 might serve as a top signal.

Broader Market Impact

The drop in Bitcoin has instigated a larger sell-off in the crypto market over the weekend, as traders adjusted their positions in anticipation of a busy week ahead.

Key Releases Awaited This Week

Investors are closely monitoring U.S. economic indicators, particularly new inflation data expected this week. The July producer price index, tracking wholesale prices, will be released on Tuesday, followed by the consumer price index for July on Wednesday.

The drop in Bitcoin has prompted broader concerns about the U.S. economy. Investors are wary of potential recession signals and are scrutinizing whether the Federal Reserve should have cut interest rates sooner to avoid economic downturns. When the Fed convened last month, it opted to keep rates steady but indicated that a rate cut in September would depend on inflation and labor market outcomes.

This article was originally published on U.Today