- Most crypto assets are in the red, suffering heavy losses, with a few assets leading the downturn.
- Ethereum faces a significant sell-off as Jump Crypto unstakes and moves over US$300 million to exchanges.
- Global economic fears worsen, pulling down traditional and crypto markets alike, raising concerns about further declines.
The crypto market is in uproar right now, with just about every single asset in the red. The only things not taking a hit are stablecoins, which is somewhat reassuring as this is how it’s meant to be.
Related: ETH Drops 20% as Jump Crypto Liquidates Staked Ether Positions, Blockchain Data Indicates
Bittensor (TAO), Mantle (MNT) and Ethereum (ETH) were some of the worst-hit assets on the 24-hour timeframe, all recording hefty losses. Ethereum is seeing a continued sell-off by Jump Crypto, who have been unstacking ETH and sending it to exchanges to the tune of over US$300 million (AU$461.65m).
Global Markets Slip, Taking Crypto Down Too
Meanwhile, the macro-economic picture has also darkened with fears of a recession driving traditional markets down. The ASX has dived by 3 percent and Japan has even been hit harder, with the Nikkei dropping by as much as 7.1%. The question then is: is the bottom in or are we seeing more pain?
Titan of Crypto (@Washigorira) believes the bull market is far from over, saying that BTC looks set for a breakout to US$178k (AU$274k) by September.
However, with more pain likely in the short term for investors, the next couple of days will be interesting. Monday morning in the United States will most likely see some upset ETF investors. ETH and BTC have booked some heavy losses, so it’s fair to say some institutional investors are not going to be very amused.
Or how Bloomberg ETF analyst James Seyffart put it, “Ethereum and Bitcoin ETF owners might be in for a rude wake up tomorrow morning regarding 24/7 trading” – because ETFs are not traded on weekends or after hours, unlike of course the crypto market, which never closes down trading.
Time to Buy Back in or Wait? That’s the Question
Aussie analyst Miles Deutscher, warned his followers over the weekend, telling them that he has exited several of his positions due to “invalidated key HTF levels”.
HTFs or high time frame levels are significant price levels or zones identified on higher time frame charts, such as daily, weekly, or monthly charts, which traders use to assess long-term trends and make trading decisions.
When a trader sees a position invalidated key HTF levels, it means that the price moved beyond these significant levels, prompting a reassessment of their trading strategy, often leading to the decision to sell off those positions to mitigate risk. This is a common practice in trading to protect capital when market conditions change significantly.
Related: US$801 Million Liquidated as BTC Dips Below US$55K, SOL Drops 30%
The interesting thing, today Deutscher announced that he is “now looking to slowly re-enter some of these positions”.
Source:
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