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Bitcoin (BTC), the largest cryptocurrency by market capitalization, saw a sell-off during Sunday's trading session. The selling continued, with Bitcoin reaching an intraday low of $57,663 in Monday's trading session.
At the time of writing, BTC was down 2.09% in the previous 24 hours to $59,450, down from its high of $62,755 on Thursday.
According to on-chain analytics firm Lookonchain, institutions seemed to have temporarily stopped buying BTC, partly contributing to the price drop.
In a tweet, Lookonchain wrote: "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."
Institutions seem to have temporarily stopped buying, and the price of $BTC dropped 4.5% today!
— Lookonchain (@lookonchain) August 12, 2024
We noticed that institutions stopped receiving $USDT from #TetherTreasury and transferring it to exchanges 2 days ago.https://t.co/0XKiPmjJed pic.twitter.com/NRFkp4Vqan
On-chain data suggests that Bitcoin's sharp rebound to highs of $62,755 in Thursday's trading session might have triggered profit-taking. On-chain analytics firm Santiment wrote in a tweet that after "Bitcoin briefly crossed all the way above $62,600, a +25% ascension in just over 3 days. As usual, average traders have been caught off guard."
Santiment further added that "sudden increased excitement of potential $70,000-$75,000 BTC prices might be a top signal for BTC."
A drop in Bitcoin (BTC) triggered a broader crypto market sell-off over the weekend, as some traders sought indications ahead of a busy week to adjust their positions.
Key releases awaited this week
Amid ongoing uncertainties about the condition of the U.S. economy, investors anticipated new inflation data due this week.
The July producer price index, which tracks wholesale prices, is due Tuesday, followed by the consumer price index for the same month on Wednesday.
A drop in Bitcoin (BTC) triggered a broader crypto market sell-off over the weekend, as some traders sought indications ahead of a busy week to adjust their positions.
Investors will be eagerly watching the inflation data following recent fears about whether the U.S. economy will enter a recession and whether the Federal Reserve should have started decreasing interest rates sooner to avoid a hard landing.
When the Fed met last month, it left rates steady but signaled that a September rate cut was possible, depending on economic data both in terms of inflation and labor market conditions.