Bitcoin prices continued to slide on Monday, extending a sell-off that began over the weekend, as sentiment towards the cryptocurrency market remained weak following a month of significant declines.
Last week, crypto markets experienced a brief respite, mirroring a rebound in broader financial markets as investors reassessed fears of a U.S. recession. However, this optimism faltered over the weekend, leading to further selling pressure on digital assets.
As of 09:17 ET (13:17 GMT), Bitcoin had dropped 1.3% to $59,830. The trading volume was relatively low due to a holiday in the Japanese market.
Bitcoin has been trading within a range of $50,000 to $60,000 over the past week, following a recent dip to $49,000. Market sentiment remains cautious, particularly with the upcoming U.S. inflation data set to be released on Wednesday, which could provide insights into the Federal Reserve’s potential interest rate cuts.
While Asian stock markets showed some recovery, the cryptocurrency sector lagged behind due to its inherently speculative nature. The strengthening dollar, driven by expectations of cooling inflation and potential Fed rate cuts, also weighed on crypto prices.
Altcoin Performance: Mixed Results and Ripple’s Legal Battle
In the broader crypto market, performance was mixed. Ethereum (ETH), the second-largest cryptocurrency, increased by 2.4% to $2,688.56. XRP, meanwhile, saw a marginal rise to $0.57, stabilizing after a strong rally the previous week. Ripple Labs, the issuer of XRP, faces a lawsuit from the SEC but has only been ordered to pay a fraction of the penalties sought, without clarifying whether crypto tokens are classified as securities.
Other altcoins experienced declines, with Cardano (ADA) and Solana (SOL) falling by 1% and 1.2%, respectively. Meme tokens like Shiba Inu (SHIB) and Dogecoin (DOGE) remained relatively flat.
Tether Denies Celsius Lawsuit Claims
In other news, Tether, the issuer of the USDT stablecoin, has strongly contested a lawsuit filed by Celsius Network, labeling it a “shakedown” and “baseless.” The lawsuit, filed on August 9 in the U.S. Bankruptcy Court for the Southern District of New York, seeks to recover approximately $2.4 billion in Bitcoin allegedly liquidated by Tether prior to Celsius’s bankruptcy in July 2022.
Tether argues that its actions were in accordance with a 2022 agreement, which required Celsius to provide additional Bitcoin as collateral during price declines. According to Tether, the liquidation of Bitcoin was conducted at Celsius’s direction to cover an $815 million debt.
Tether criticized the lawsuit’s legal foundation, calling it an “obvious misapplication of the law” and questioning its jurisdiction. The company reassured investors of its financial stability, citing $12 billion in consolidated equity as of June 30, 2024.
Celsius contends that Tether did not provide the agreed-upon 10-hour timeframe to meet the collateral demand and proceeded with what it describes as an improper liquidation of 39,542.42 Bitcoin. The $2.4 billion claim represents the current value of the Bitcoin involved.
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