Global markets are experiencing a sell-off amid the Yen carry trade unwinding, Middle East tensions, and U.S. recession fears. The Japanese Nikkei index fell 12.4%, its worst day since 1987’s Black Monday. U.S. equity futures and crypto followed suit, with the SPY and QQQ opening down over 4% and Bitcoin and Ethereum falling to lows of about $49k and $2,100. Bitcoin and Ether have since pared losses, with BTC 0.27% trading just under $55k and ETH -0.23% bouncing to $2,450. The crypto market has seen over $1.2 billion in liquidations over the past 24 hours, with total open interest getting wiped by over 20%. Altcoins showing the most strength on this morning’s bounce include TIA -0.63% , ONDO -1.40% , and TAO -2.89% , which have gained 9.21%, 4.42%, and 3.23%, respectively, while the total crypto market cap is down over 5.75%.
Jump Crypto Liquidates ETH Holdings
As crypto assets sold off during the weekend, the selling pressure was exacerbated by Jump Crypto seemingly liquidating a large portion of their Ethereum holdings. Ethereum dropped more than 20% last night, partially attributed to the aggressive selling from Jump. Wallet trackers linked about $500 million in ETH outflows from Jump to centralized exchanges, with total ETH balance dropping from 24k to about 3k as of this morning. Jump Trading is reportedly being investigated by the CFTC with the firm’s president stepping down in June and some have speculated that Jump is exiting the crypto market altogether.
Bankrupt crypto lender Genesis has completed its restructuring process after filing for Chapter 11 in January 2023. Genesis has initiated the distribution of approximately $4 billion in digital assets and USD to its creditors. The repayment amount varies by type of debt, with the average repayment equaling approximately 64% of claims. All dollar and stablecoin creditors are expected to receive 100% of claims, while Bitcoin, Ethereum, and altcoin creditors will receive varying amounts, with all distributions paid in-kind. Bitcoin creditors are set to receive 51.28% of their claims, and Ethereum creditors will receive 65.87%. Solana creditors are only expected to receive 29.58% of claims, while all other altcoin creditors will receive 87.65%. Creditors will be eligible to receive further distributions depending on ongoing claims, reconciliations, and litigation.
Technical Strategy
For those wondering if this recent deterioration in cryptocurrencies might offer opportunities for Dip-buyers and question whether it’s right to buy Bitcoin, vs. other Cryptocurrencies, it’s important to note that the Dominance chart for Bitcoin remains trending up sharply over the last two years, with no break in this two-year uptrend. Until this shows some evidence of trend deterioration that might suggest a possible rotation towards other Cryptocurrencies, it still looks right to favor BTC 0.27% expecting further outperformance. At present, it remains hard not to own Bitcoin, as it continues to show much better relative strength than much of the space.
Daily Important
Metrics
Crypto Size
Bullish signal is tied to the crypto market growing
Market cap 1.93T
$-223.8B(-10.39%)
BTC
Dominance
55.77
%
(0.01%)
Stablecoins
Increase in circulating stablecoins is a Bullish
signal
In Circulation +$115B
(0.00%)
In
Exchanges
+$19B
(0.40%)
BTC Metrics
A decrease in Bitcoin on exchanges is bullish,
indicates
investors are moving coins to cold storage
# BTC
Exchanges +$3.0M
(0.02%)
Funding Rates
Positive funding rates indicate traders are Bullish
Aggregate
+0.3155(-0.4232)
Binance
-0.4142(-0.7307)
Bitfinex
0.0000(-0.4294)
Bitmex
+0.5182(-0.3365)
ByBit
+0.2283(-0.2547)
Deribit
-0.1791(-0.2080)
Huobi
+1.0000(1.0000)
Kraken
-0.0598(-0.4212)
Mean
+0.3155(-0.4232)
OKex
-0.2460(-1.3196)
Sentiment
BMI : 57
(100.00%)
Futures
A positive spread between Futures
Prices and
Spot Prices is Bullish
CME
Price
$54,825(-12.90%)
Spot
Basis
+$326(0.60%)
Volume
774,220(14.48%)
Open
Interest
312,420(1.51%)
Options all exchanges
Higher open interest change in a bull market is
bullish for
the sector
Bankrupt crypto lender Genesis Global Capital has now completed its restructuring process and began debt repayment to creditors. This development comes amidst reports of Genesis making large-scale network transactions in the last day. Related Reading: Bitcoin Whale Move: 600 BTC Sent From Genesis Trading To Coinbase, Here’s What To Know Genesis Moves $1.5 Billion Bitcoin […]
Jump Trading significantly contributed to the crypto market sell-off, and it could be looking to sell another $104 million worth of crypto.
The current crypto market crash is being directly linked to selling by Jump Trading, according to QCP Group, one of Singapore’s first digital asset trading groups.The price of Ether (ETH) fell over 21% in the 24 hours leading up to 11:20 am UTC to trade at $2,252, according to Cointelegraph data.The crash to an over five-month low was mainly caused by Ether selling from Jump Trading and Paradigm VC, according to an Aug. 5 report by QCP Group, which wrote:Read more
Economics adviser Gene Sperling joined Ripple’s board in 2015 after serving under Presidents Bill Clinton and Barack Obama.
One of United States President Joe Biden’s senior economic advisers and a former member of Ripple Labs’ board of directors will be leaving the White House to join Kamala Harris’ 2024 presidential campaign.In an Aug. 5 notice, President Biden said Gene Sperling would leave his administration, where he had worked as a senior adviser since 2021. Reports suggested that Sperling will join Vice President Kamala Harris’ campaign with roughly three months until the presidential election, with leading candidates including herself and Republican nominee Donald Trump.Sperling joined Ripple’s board in 2015 after serving as an economic adviser under Presidents Bill Clinton and Barack Obama. He served in the Biden administration starting in 2021. At the time of publication, Ripple’s website did not list the economic adviser as one of its nine-member board of directors.Read more
A unit of HashKey Group is the latest to receive a "Major Payment" license in the crypto-friendly city-state, Singapore.
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