Daily News | Market Plummeted, Jump Trading May Liquidate Its Crypto Positions

2024-08-05, 05:36

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## Crypto Daily Digest: BTC and ETH spot ETFs both experience net outflows, indicating a lack of sustained capital inflows in the market
According to Farside Investor data, last Friday, the overall net outflow of <a href="/price/<a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">bitcoin</a>-btc" target="_blank" class="blog_inner_<a href="/price/link-ln" target="_blank" class="blog_inner_link">link</a>">Bitcoin</a> spot ETFs was $234 million, mainly from $104 million from Fidelity FBTC, $87 million from Ark Fund ARKB, and small inflows from BlackRock IBTC and Grayscale Mini Trust.

The net outflow of ETH ETF was $54 million, mainly from Grayscale ETHE, while other ETH ETFs only had some small transactions.

**Arthur Hayes: Rumors suggest that a blue whale has been severely damaged and is selling all cryptocurrencies**

Arthur Hayes, a well-known KOL in the crypto community, tweeted that he learned from sources that a certain whale had been severely damaged and is selling all cryptocurrencies. “I don't know if this is true, I won't say the name.” Currently, most community users speculate that the whale is Jump Trading.

According to Arkham data, Jump Trading's current stablecoin position has reached 96%, with a total value of $595 million. Among them:

· USDC holdings worth $468 million
· USDT holdings worth $103 million
· ETH holdings worth $8.7 million
· WBTC holdings worth $2.68 million
· CVX holdings worth $1.95 million
· WETH holdings worth $1.56 million

**Jupiter approved a proposal to reduce the JUP token supply**

Previously, the Jupiter team planned to reduce the token supply by 30%. The main content includes a voluntary reduction of 30% allocation share by the team, a reduction of 30% in the Jupuary airdrop distribution volume, and the remaining reductions coming from LP and strategic reserves. At present, the proposal has been approved. Co-founder Meow stated that token burning may take up to 6 months to complete.

**Data: Crypto Fear and Greed Index fell to 26 today, hitting a nearly three-week low**

According to Alternative data, the crypto fear and greed index fell to 26 today (compared to 34 yesterday), indicating that the market is currently in a state of "fear" and the index has hit a new low in nearly three weeks.

## Market Trends: The overall market has experienced a significant decline, and the expected recovery cycle of the market has been extended
BTC: The price of Bitcoin fell sharply to $52,500, then rebounded and has now risen to around $54,500. The BTC weekly Bollinger Bands fell below the lower limit, and according to market news, it is suspected that Jump Trading has liquidated its crypto positions.

ETH: <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> also experienced a sharp decline, falling below $2,100 at one point. Jump Trading transferred over 100,000 ETH in the past week.

Altcoins: Altcoins generally fall sharply, and the market is in mourning.

AHR999 Index: Today's AHR999 Index is 0.66, indicating a significant decline in the index. The current price is a good buying opportunity for long-term investors.

Fear & Greed Index: The current index is 26, indicating that the market sentiment has entered a fear stage.
### Market Hotspots:
Meme sector: The Meme sector has generally fallen, with popular Meme coins such as WIF, POPCAT, POEPLE all experiencing a significant drop of over 20%.

<a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> ecosystem: Jupiter, the largest aggregator trading platform on the Solana chain, announced a 30% reduction in JUP supply through a margin call. JUP performed relatively well, only falling by 10%.

## Macroeconomics: US stock market drops by over 1%, expectations of Fed September interest rate cut soaring
Last Friday, the European and American stock markets fell by more than 1%. The S&P 500 index fell 1.84% to 5346.56 points; The Dow Jones Industrial Average fell 1.51% to 39737.26 points; The Nasdaq index fell 2.43% to 16776.16 points. Today, the US stock index futures continued their downward trend, while the Nasdaq futures fell by 3%. On the evening of August 2 at 20:30 Beijing time, the US July nonfarm payroll report shocked the market, with the lowest new job creation in three and a half years, the highest unemployment rate in nearly three years, and triggering the Sam's Rule, a recession indicator with an accuracy rate of up to 100%. Panic is spreading rapidly, and traders are betting on a 50 basis point rate cut in September, predicting that this year's rate cut will exceed 110 basis points.

After the data was released, the futures of the three major US stock indexes fell in the short term. The Nasdaq futures fell more than 2%, the S&P 500 futures fell 1.6%, and the Dow Jones futures fell 1.2%; The yield of US treasury bonds fell rapidly. The yield of US 10-year treasury bonds fell by 19 basis points to a low of 3.79% this year; The US dollar index is experiencing a short-term decline.
### Conclusion
The current market shows an overall downward trend, with Bitcoin and Ethereum lacking significant funding support in the short term. The funds in the Altcoin market are scattered and lack hotspots. Regarding the macro environment, market expectations for interest rate cuts are high, but traders believe there may be a risk of recession. Investors should remain cautious in the current environment and wait for market trends to become clearer before making decisions.

<div class="blog-details-info">
<div>Author:**Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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