Last week’s better-than-expected US economic data and the drop in South Korea’s Kospi index also impacted the cryptocurrency market. Bitcoin and altcoins experienced sharp declines, with altcoins taking the hardest hit.
According to Glassnode, while the recent negative events haven’t significantly impacted Bitcoin, they appear to have increased selling pressure on altcoins.
Altcoins Fell Sharply Over the Weekend! The Sharpest Loss Since April is On the Horizon!
Altcoins lost over 5% of their value over the weekend due to increased selling pressure. According to Glassnode’s assessment, the risk-aversion trend in equity markets also reflected in the cryptocurrency market, deepening the losses in altcoins.
The negative sentiment in traditional financial markets is also affecting the digital asset market, with sell-offs concentrated particularly in altcoins, indicating a weakening appetite among investors for risky assets.
If the decline concludes at current levels, it could mark the sharpest weekend drop since April.
“Weekend sell-offs hit altcoins hard.”
As fear in the stock market spilled over into crypto, a typical altcoin dropped by over 5%. If the weekend closes like this, it would be the biggest weekend drop since April.
Glassnode also noted that data to date has shown that buying on Friday and selling on Sunday has been a profitable trading trend for Bitcoin since its June lows. However, the sharp decline experienced last weekend has called this trend into question.
According to Glassnode, the continued selling pressure in altcoins suggests that weekend price movements could become riskier for investors.
Altcoins Crashed! Bitcoin Losses Remained Limited!
The decline in altcoins has also been a focus for the analytics company 10X Research, in addition to Glassnode.
10X Research analysts noted that altcoins experienced a much sharper decline than Bitcoin during last week’s sell-off. According to 10X Research, the 141 cryptocurrencies the company tracks lost an average of 14% in value, while Bitcoin only fell by 3%.
The report highlighted declines in trading volumes, a contraction in stablecoin supply, and net outflows from spot Bitcoin ETFs as indicators of weak market liquidity.
