Bitcoin Price Falls to $58k After Weekend Sell-Off

The price of bitcoin dropped on Monday, continuing the sell-off that began over the weekend as investor confidence in cryptocurrency markets remained low after a severe decline over the previous month.

As investors wagered that fears of a U.S. recession were exaggerated, cryptocurrency experienced some respite towards the end of last week, reflecting a recovery in more general financial markets. 

However, this idea lost traction during the weekend, as evidenced by the prolonged selling of cryptocurrency tokens over the last two days. Bitcoin dropped 4.3% by 01:52 ET (05:52 GMT) to $58,520.7. 

A Japanese market vacation also contributed to a little lull in trading volumes.

 After falling to $49k, bitcoin is now rangebound

The largest cryptocurrency in the world had dropped as low as $49,000 earlier in the week, and it was now stuck between $50,000 and $60,000.

Risk-taking investors' mood remained tense, particularly ahead of Wednesday's significant U.S. inflation data, which is expected to provide fresh hints about the Federal Reserve's interest rate-cutting intentions.

Despite recent gains in stock markets, with Asian shares rising on Monday, the more speculative nature of the cryptocurrency market caused it to lag behind this upswing.

Additionally, the dollar showed some resilience as traders positioned themselves ahead of Wednesday's inflation report, which resulted in inflows into the greenback. It is anticipated that the data would demonstrate more July inflation cooling, providing the Fed greater confidence to start reducing interest rates.

Today's crypto price: XRP rallies, altcoins decline

Larger cryptocurrency markets also fell as selling in Bitcoin filtered into popular altcoins.

Ether, the #2 token globally, dropped 4.3% to $2,549.22.

XRP pulled back from a robust rise last week, falling 4.7% to $0.5625.

A portion of the fines that the Securities and Exchange Commission was requesting from XRP issuer Ripple Labs for the company's unauthorized selling of securities were mandated to be paid.

However, the ruling did not resolve any regulatory ambiguity regarding the classification of cryptocurrency tokens as securities.

SOL and ADA had drops of 8.3% and 5.8%, respectively, among other altcoins.

Both Memetokens SHIB and DOGE had losses exceeding 6%.

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