As the price of bitcoin breaks below its critical 200-day moving average support today, Peter Schiff predicts a significant crash on Wall Street for the Bitcoin ETF.
During Monday, August 5, during the Asia trading hours, there was a significant decline of over 12% in the price of Bitcoin, which ultimately dropped below $54,000. As traders reduce their holdings in the majority of riskier assets, concerns about the US recession have surged once more. Well-known economist Peter Schiff predicted that Monday’s trading session will be difficult for Bitcoin ETFs.
Bitcoin ETFs can see major gap down
As previously stated, the price of Bitcoin (BTC) has now dropped to $54,000, below the lows from July. If this scenario plays out, well-known economist Peter Schiff predicts that spot Bitcoin ETFs may fall 15% on Monday compared to their January levels. If so, it may lead to future large-scale liquidations.
#Bitcoin just sank below $58K. If it takes out it’s July low by tomorrow’s U.S. #StockMarket open, #BitcoinETFs will gap down by more than 15%, 30% below their Jan. highs. A loss of that magnitude may finally trigger mass ETF liquidations. If so, brace for a #Crypto black Monday.
— Peter Schiff (@PeterSchiff) August 4, 2024
On Friday, August 2, all three US indexes saw a severe sell-off, and as a result, outflows from spot Bitcoin ETFs increased dramatically to almost $230 million. Liquidations in the cryptocurrency market have surged over $800 million as of Monday’s Asian trading hours. A significant market correction has affected altcoins, with the price of Ethereum plunging all the way to $2,200 and weekly losses reaching over 30%.
BTC drop to $40,000 coming?
Analysts are forecasting a significant decline from here as well, with the price of Bitcoin having lost the 200-day moving average, which is a critical support level. According to Julio Moreno, an analyst with CryptoQuant, there’s a possibility that Bitcoin would drop below $40,000 if it is unable to reclaim the $57K support level.
Bitcoin is again testing key support levels.
The price is down to ~$57K, which is 12% lower than the On-chain trader realized price. This level has represented a support thorough the current bull market (dotted light blue line).
But, If this support fails, the price can go as… pic.twitter.com/G76hOAh34X
— Julio Moreno (@jjcmoreno) August 4, 2024
Since its July highs, Japan’s Nikkei index has plummeted by more than 20%, sparking a sell-off throughout the world market. Additionally, the US futures market is trading very lower on Sunday, suggesting that there may be more selling to come. The likelihood of a US recession and harsh landing has also greatly increased!
Jump crypto liquidates ETH positions, moves $46.7M of ETH to CEX
As the cryptocurrency market experiences a sell-off, Jump Trading’s cryptocurrency company, Jump Crypto, has liquidated massive quantities of Ethereum to centralized exchanges (CEXs) including Binance, OKX, Bybit, Coinbase, and Gateio.
According to data from blockchain analytics firm Spot On Chain, Jump Crypto has transferred 17,576 ETH, or around $46.78 million, to several CEXs in the previous day.
“The remaining 37.6K $wstETH ($101M) and 11.5K $STETH ($26.3M) of [Jump Crypto] are still in their wallet and are being unstaked by Lido Finance, respectively,” the analytics site states.
[Update] Jump Trading moved another net amount of 17,576 $ETH ($46.78M) to CEX in the past 24 hours!
This solely came from their existing $ETH holding.
Their remaining 37.6K $wstETH ($101M) and 11.5K $STETH ($26.3M) still remain in their wallet and under the unstaking process… https://t.co/fNn4RKejgf pic.twitter.com/Koab3o8ybV
— Spot On Chain (@spotonchain) August 5, 2024
The large Ethereum transactions have been made possible by Jump Trading’s cryptocurrency section, Jump Crypto, which is situated in Chicago.
Liquidations come after redemption
Following Jump Trading’s purported redemption of 83,091 wrapped staked Ethereum (wstETH), valued at $341 million, on July 25, there have been other recent Ethereum liquidations (stETH).
They have unstaked 86,059 stETH—or $274 million—from Lido Finance, a well-known decentralized staking platform, after this redemption.
A total of 72,213 ETH, worth $231 million, has been deposited by Jump Trading into a number of significant centralized exchanges, including Binance, OKX, Bybit, Coinbase, and Gateio.
Sell-off echoing 2021’s crypto market collapse
The second-largest cryptocurrency, Ethereum (ETH), is down 19% at $2,356 as of Monday. At 3:50 UTC, the price of bitcoin was 10% down at $54,207.
The substantial sums of ETH that Jump Trading liquidated raises questions about possible downward pressure on the asset’s price, but it also illustrates the depth and liquidity of the cryptocurrency market.
These transactions demonstrate the company’s new approach to managing its Ethereum holdings, which may point to a realignment of its cryptocurrency portfolio or the anticipation of market shifts. Large-scale cryptocurrency price fluctuations are caused by volume movements.
Jump crypto president steps down amid CFTC probe
In June, only a few days after word leaked out that the Commodities Futures Trading Commission (CFTC) was looking into the trading firm, Jump Crypto President Kanav Kariya said he was leaving the Chicago-based company.
Jump Crypto’s trading and investments in the cryptocurrency space are the main subjects of the CFTC investigation. Jump Crypto was founded in 2015, but it has had a number of difficulties recently, especially since the US government has tightened its oversight of the digital industry through enforcement.
While taking “some time to process the unbelievably eventful few years” he has had to manage the trading behemoth, Kariya said in response to his announcement that he will “stay engaged with the portfolio companies” that he has been associated with after leaving the company.
When it was discovered in 2023 that the company had generated $1.28 billion before to the collapse of Terraform Lab’s Terra Luna ecosystem, of which Jump Crypto had a market-making agreement, the company came under investigation.
Memecoin dumps, then pumps after Vitalik Buterin sells unwanted airdrop
After Buterin sold all 17 billion Neiro airdropped, the memecoin saw a sharp decline, but in an odd turn of events, it quickly rebounded.
Even though Vitalik Buterin fully dropped the token, the memecoin that was trying to capitalize on his notoriety to attract attention recently saw a 200% increase in value.
On August 4, the somewhat obscure token made an attempt to become more popular by airdropping 4% of its supply to the co-founder of Ethereum in a bid to establish his dominance among holders.
We are the people’s $Neiro, on the people’s chain, @ethereum.
And a little fun fact: @VitalikButerin is currently our largest holder. (4% of supply, ~$130k value as of the time of this post)
— Neiro on Ethereum (CTO) (@neiroethcto) August 3, 2024
However, the co-founder of Ethereum waited just an hour before selling all of his memecoin holdings. Buterin sent 44.5 ETH, or around $103,000 at the time, in return for 17.1 billion NEIRO memecoins.
The token first dropped by almost 60% as a result of Buterin’s speedy transfer because people became aware of the sale.
But since then, the Neiro on ETH (NEIRO) token has increased by more than 200%, reaching an all-time high of $0.000038 on August 5, according to DexScreener.
At the same time, the Neiro on Ethereum (CTO) account associated with the token posted:
Hey @VitalikButerin, we see that you sold your $Neiro bag.
Our humble ask is that you donate part of the proceeds to a stray dog shelter.
And thank you for building our playground!
— Neiro on Ethereum (CTO) (@neiroethcto) August 5, 2024
At least six NEIRO coin versions are registered on Uniswap, four distinct NEIRO tokens are listed on CoinGecko, and there are many more likely fraudulent Neiro-related accounts on X.
Furthermore, according to Cointelegraph, the creator of a Solana-based version of Neiro made $2.85 million in an alleged rug pull on July 29.
Independent blockchain expert “Wazz” issued a public alert in late July alerting people to the fact that the “biggest Neiro token on Ethereum is a honeypot.”
Memecoins are suffering in the current market meltdown, as the overall market capitalization of memes has dropped to $35.8 billion during the last day, a 16% decrease.
Pepe (PEPE), dogwifhat (WIF), Floki (FLOKI), and Book of Meme (BOME) are the biggest losers, having all dropped between 18% and 20% in the last day.
