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China Fund News Amman

Global assets are being sold off like crazy! Bitcoin is plummeting.

On August 5, Bitcoin fell below $54,000 in the morning. Unexpectedly, it was sold off again in the afternoon, and crashed again around 2 a.m., falling below $50,000 at one point, with the largest intraday drop exceeding 16%. As of press time, the drop has narrowed to around 12.6%.

According to Coinglass data, in the past 24 hours, more than 278,000 people had their positions liquidated, with a total amount of about $1.06 billion. Judging from the liquidation situation, the number of long orders that were liquidated was far greater than the number of short orders.

As Bitcoin fell, other virtual currencies also fell across the board.

Ethereum (ETH) fell by more than 20% in 24 hours, falling below $2,200 at one point, also hitting a new low in recent months. As of press time, ETH has rebounded to around $2,300; SOL once fell below $120, and the current price remains around $123, with a 24-hour drop of more than 12%; BNB fell below $450, with a 24-hour drop of more than 15%.

Jeffrey Ding, chief analyst at HashKey Group, said that more than $500 billion has vanished in the market since August 2, marking the largest three-day sell-off in nearly a year. Among the top 10 tokens with the largest market capitalization, Solana has suffered the most, falling more than 30% since July 30.

Jeffrey Ding believes that from a macro-financial perspective, Asian stocks continued the decline of the U.S. stock market on Friday, and the S&P 500 fell to its lowest point since October 2022 after weak employment data. Japanese stocks led the decline, and the market expects the Bank of Japan to raise interest rates more times. The market is worried that the Fed's decision to keep interest rates unchanged may lead to a further slowdown in the economy, and the worsening situation in the Middle East has also greatly weakened market sentiment. Saudi Arabia raised the price of its flagship crude oil exports to Asia for the first time in three months, leading to higher oil prices. Goldman Sachs raised the risk of a recession in the United States next year from 15% to 25%. Traders may soon turn their attention to China's Caixin services and comprehensive activity data to understand the health of the world's second-largest economy. China also announced 20 measures to stimulate consumption over the weekend.

“Investors are likely to remain in ‘risk-off’ mode in what is forecast to be a volatile week with heightened tensions in the Middle East and renewed recession fears. The Reserve Bank of Australia policy meeting, U.S. economic activity and credit data, and speeches by regional Fed officials will also be closely watched this week,” he said.

Large cryptocurrency liquidations

Accelerating decline

According to Foresight News, BitMEX co-founder Arthur Hayes posted on social media that he learned through traditional financial sources that a "big guy" had collapsed and sold all his crypto assets. Currently, most of the community speculates that he is referring to Jump Crypto.

According to an analysis released by EmberCN yesterday, Jump Trading may be selling ETH and is currently redeeming a sum of $410 million worth of wstETH (120,000 tokens) in batches into ETH and then transferring it to trading platforms such as Binance/OKX.

As of yesterday, JumpTrading has redeemed 83,000 wstETH into 97,500 ETH in the 9 days since July 25. Among them, 66,000 ETH (about 191 million US dollars) have entered the trading platform. According to Scopescan monitoring, Jump's positions are currently dominated by USDC and USDT.

In addition, after the market price continued to fall due to severe selling pressure, there were multiple large liquidations and on-chain liquidation events today. In the morning, four whales were forced to liquidate a total of 14,653 ETH, worth approximately $33.54 million, due to the rapid decline in the market. According to Parsec data, the lending liquidation volume on DeFi exceeded $320 million in the past 24 hours, setting a new high for the year.

Centralized exchanges also experienced large-scale liquidations. A Binance user had his long order liquidated for $10.9074 million at 10:17 am today when the Ethereum price was $2,197. The contract trading pair was ETH/USDC.

As the market continued to liquidate leverage, it also increased selling pressure, causing the crypto market to fall sharply.

Editor: Joey

Audit: Wooden Fish

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