Crypto Markets Slide 2.86% Amid Fear of Massive Sell-offs; Solana and Cardano Lead Losses

Crypto News – CoinDesk 20, a comprehensive index of the most actively traded cryptocurrencies, recorded a 2.86% decline in the past 24 hours.

Major cryptocurrencies started the week on a bearish note, driven by concerns about substantial Bitcoin sell-offs. Investors appear to be reducing their exposure to the broader crypto market in anticipation of potential price declines.

In the same 24-hour period, Solana’s SOL and Cardano’s ADA experienced notable losses of 5%, leading the downturn among major digital assets. Binance’s BNB Chain, on the other hand, remained relatively stable, likely due to increased demand for tokens required on the Binance crypto exchange’s launchpads. Dogecoin (DOGE) initially defied the market’s weakness, fueled by speculation of its adoption in an upcoming feature on the social application X. However, it has since retraced its gains over the past six hours.

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Bitcoin, the largest cryptocurrency by market capitalization, dipped below the critical support level of $41,000 early on Monday. Traders are anticipating a potential drop to as low as $38,000 in the coming weeks, which could trigger further losses across the cryptocurrency spectrum.

Some analysts attribute the recent downward pressure on Bitcoin to sales originating from Grayscale’s GBTC Bitcoin exchange-traded fund (ETF), including insights from Bloomberg’s Eric Balchunas.

According to data from the analysis firm Arkham, verified wallets associated with Grayscale moved more than $400 million worth of Bitcoin to Coinbase Prime custodian last Thursday, raising speculation of a possible future sale.

In contrast, newly approved Bitcoin ETFs, such as BlackRock’s IBIT and Fidelity’s FBTC ETFs, have seen substantial inflows, with both surpassing the $1 billion mark last week, as indicated by data tracked by CoinGlass, suggesting renewed buying interest.