Crypto Markets Erase Last Week’s Gains

Cryptocurrency markets took a downturn on Monday, wiping out last week's gains.

Bitcoin (BTC) dipped 4% to $63,100, while Ethereum (ETH) fell 3% to $2,580. Solana (SOL) and Polkadot (DOT) are down 2% and 6%, respectively.

The market slump triggered a wave of liquidations, with 70,159 traders being liquidated in the past 24 hours, totaling $187 million, according to data from CoinGlass.

Bitcoin longs accounted for $39 million of these liquidations, while Ethereum longs contributed $24 million. Long positions are bets that the price of an asset will rise.

Good Week for ETFs

Crypto asset manager CoinShares reported that inflows totaled $1.2 billion last week, marking the third consecutive positive week. This inflow is the largest since the week ending July 19, largely due to rising expectations of continued interest rate cuts in the United States.

U.S.-based funds were at the forefront, contributing $1.17 billion of the total inflows. Bitcoin funds alone attracted over $1 billion, while Ethereum products broke a five-week losing streak by pulling in $87 million.

"The approval of options for certain US-based investment products likely boosted sentiment, although trading volumes have not seen a commensurate rise. In fact, they declined slightly by 3.1% week-on-week," CoinShares noted in its report.

Spot Bitcoin exchange-traded funds (ETFs) attracted more than $1.1 billion last week, per Farside Investors data.

This included a single-day inflow of $494.4 million on Sept. 27, the highest since June 4. BlackRock’s iShares Bitcoin Trust led weekly inflows with $499 million, followed by the ARK 21Shares Bitcoin ETF and the Fidelity Wise Origin Bitcoin Fund, which brought in $290 million and $206 million, respectively.

Key Macro Events

Investors are also eyeing major macroeconomic events this week that could influence market direction.

“As we head into next week, the key focus will be on upcoming labour market indicators, including JOLTs, ADP, and the U.S unemployment rate. Strong performance in these metrics could bolster the case for a 50bps cut in November, further propelling risk assets,” wrote QCP Capital, a digital asset manager.

Meanwhile, the Dow Jones Industrial Average lost 0.1%, the S&P 500 declined by 0.2%, and the Nasdaq slipped 0.4%.