Bitcoin Slips Below $58,000 as Crypto Market Experiences Weekend Slump

Bitcoin, the leading cryptocurrency, has dropped below $58,000 following a subdued performance across the crypto market over the weekend. Along with Bitcoin, other major digital assets, including Ethereum and various altcoins, saw significant price decreases, with crypto exchanges reporting high volumes of liquidations.

Early on Monday, Bitcoin was trading at $57,500, marking a 1.5% drop over the past 24 hours and nearly a 10% decline over the past week. Despite this downturn, Bitcoin maintains its position as the largest cryptocurrency, boasting a market capitalization of $1.1 trillion and a market dominance of 54%.

Ethereum, the largest altcoin and second-largest cryptocurrency by market cap, also suffered a drop. As of the latest figures, Ethereum was trading at $2,440, which represents a 1.7% decrease over the past day and an 11% decline over the past week. Solana, another notable cryptocurrency, was trading at $129.63, down 1.7% in the last 24 hours and 18.8% over the past seven days.

In the past 24 hours, Coinglass data revealed that Bitcoin long liquidations on centralized exchanges reached over $41.5 million, contributing to a total of $50 million in overall Bitcoin liquidations. The wider cryptocurrency market saw over $162 million in liquidations, with approximately $135 million stemming from long positions. Coinglass also reported that funding rates for Bitcoin futures across derivatives exchanges have turned negative, indicating a bearish sentiment among traders.

The recent slump in Bitcoin’s price coincides with a week marked by net outflows from spot Bitcoin ETFs. Data from Farside Investors UK indicated that on Friday, the last trading day of the week, 12 spot Bitcoin ETFs recorded outflows totaling $175.6 million. Grayscale’s GBTC led the outflows with $70.2 million, followed by Ark and 21Shares ARKB with $65.0 million, and Bitwise BITB with $16.4 million.

Altogether, the 12 spot Bitcoin ETFs in the U.S. experienced a net outflow of $276 million last week, which may have contributed to the decline in Bitcoin prices over the weekend.

Bitcoin continues to be the primary cryptocurrency, with its price movements significantly influencing the broader crypto market. Historically, fluctuations in Bitcoin’s value have impacted the prices of other digital assets, underscoring its central role in the cryptocurrency space.