Bitcoin drops below $58K amid weekend crypto market turbulence

Bitcoin, the world’s largest cryptocurrency, has seen a significant decline, dropping below the $58,000 mark following a challenging weekend for the crypto markets.

Early Monday morning, Bitcoin was trading at approximately $57,500, marking a 1.5% decrease in the last 24 hours and a nearly 10% drop over the past week.

This decline has raised concerns among investors, as Bitcoin continues to dominate the cryptocurrency market with a capitalization of $1.1 trillion, maintaining a strong 54% market share. However, this recent slump has not been limited to Bitcoin alone; other major cryptocurrencies have also experienced substantial losses.

Ethereum and Solana Follow Suit

Ethereum, the second-largest cryptocurrency by market cap and the biggest altcoin, has also been affected by the weekend’s downturn. As of the latest reports, Ethereum is trading at $2,440, reflecting a 1.7% decrease over the past day and an 11% decline over the past week. Solana, another prominent cryptocurrency, has seen its value drop to $129.63, experiencing a 1.7% decline in the last 24 hours and a significant 18.8% decrease over the past seven days.

The widespread decline in cryptocurrency prices has been accompanied by high volumes of liquidations across various exchanges. Data from Coinglass reveals that Bitcoin long liquidations on centralized exchanges reached over $41.5 million within the last 24 hours, contributing to a total of $50 million in Bitcoin liquidations alone. The broader cryptocurrency market witnessed over $162 million in liquidations, with about $135 million stemming from long positions. This indicates a bearish sentiment among traders, as funding rates for Bitcoin futures across derivatives exchanges have turned negative.

Impact of ETF Outflows

The recent price slump can be attributed, in part, to the net outflows observed from the 12 spot Bitcoin ETFs over the past week. According to data from Farside Investors UK, the final day of trading last week saw these ETFs record an outflow of $175.6 million. Grayscale’s GBTC led the outflows, with $70.2 million exiting the fund, followed by Ark and 21 Shares ARKB, which recorded $65.0 million in outflows. Bitwise BITB was also affected, with $16.4 million leaving the fund. In total, U.S. Bitcoin ETFs experienced a net outflow of $276 million last week.

These outflows are believed to have played a significant role in the weekend’s Bitcoin price decline. Historically, Bitcoin’s price fluctuations have shown to impact the broader cryptocurrency market, influencing the prices of other digital assets.

Looking Ahead

As Bitcoin continues to navigate this period of volatility, investors are closely watching for signs of stabilization or further declines. The cryptocurrency’s performance in the coming days will likely be influenced by a combination of market sentiment, regulatory developments, and broader economic factors. Despite the current downturn, Bitcoin remains a dominant force in the cryptocurrency space, and its future trajectory will be a key factor in the overall health of the market.