Solana, Cardano Spearheading Market Dip Amid BTC Challenges

• Cryptocurrencies Kick Off the Week on Downward Trend
• Major Cryptocurrencies Experience Decreases
• Bitcoin Loses Key Support Level
• Downward Pressure on Bitcoin
• Other Bitcoin ETFs Witness Inflows

Cryptocurrencies Kick Off the Week on Downward Trend

Notable cryptocurrencies launched the week in negative territory as possible sizeable bitcoin sales create unease among investors. These investors appear to be decreasing their engagement in the wider market, expecting lower prices. The Source 20, an index of the most frequently traded tokens, has seen a decrease of 2.86% in the last 24 hours.

Major Cryptocurrencies Experience Decreases

Solana$104 5.03%'s SOL and Cardano's ADA have both suffered a 5% loss in the last 24 hours, indicating the greatest losses among major cryptocurrencies. BNB$312 -5.65% Chain's BNB remained largely unaffected, coinciding with a demand for launchpads requiring the token on the Binance crypto exchange. Despite initial resilience against the broader market downturn, Dogecoin$0.091 -0.42% (DOGE) has receded in the past 6 hours due to rumours of its incorporation in an impending feature on social application X.

Bitcoin Loses Key Support Level

Bitcoin$42,260 -0.64%, the world's largest cryptocurrency by market value, dropped below the $41,000 support level early Monday. This has led market participants to forecast a decline to as low as $38,000 in the upcoming weeks. Such a scenario could trigger further declines in other cryptocurrencies.

Downward Pressure on Bitcoin

Recent downward pressure on bitcoin has been linked to sales originating from Grayscale's GBTC bitcoin exchange-traded fund (ETF) according to some analysts, Mr. Eric Balchunas of Bloomberg included. Wallets verified as Grayscale's by analysis firm Arkham have been observed moving over $400 million worth of bitcoin to Coinbase Prime on Thursday. This could signal an impending sale.

Other Bitcoin ETFs Witness Inflows

Conversely, other newly approved bitcoin ETFs have been attracting net inflows. BlackRock's IBIT and Fidelity's FBTC ETFs surpassed the $1 billion threshold last week as per data from CoinGlass, demonstrating buying pressure.

Edited by Jonathan Stoker