2024-08-05 05:02

A wallet supposedly associated with Jump Trading moved 17,576 ETH to centralized exchanges, according to Spot On Chain. ETH's price drops to lowest since January. A wallet supposedly associated with Jump Trading moved 17,576 ETH to centralized exchanges, according to Spot On Chain. Ether's (ETH) price cratered as a prominent crypto trading firm moved large amounts of ETH to centralized exchanges in preparation for potential liquidation. Ethereum's native token, the second-largest cryptocurrency by market value, has dropped 20% in 24 hours, hitting a seven-month low of under $2,100 during Monday's Asian hours, according to CoinDesk data. In the past 24 hours, a wallet identified as Chicago-based trading heavyweight Jump Trading by onchain sleuth Spot On Chain transferred 17,576 ETH worth over $46 million to centralized exchanges. In June, reports emerged that Jump Trading was being probed by the CFTC. The wallet has moved nearly 90,000 ETH to exchanges since July 25 and still holds 37,600 wstETH and 11,500 stETH at press time. wstETH is the DeFi-compatible version of Lido's staked ether (stETH). "The reason for the crazy crypto sell-off seems to be Jump Trading, who are either getting margin called in the traditional markets and need liquidity over the weekend, or they are exiting the crypto business due to regulatory reasons (Terra Luna related)," Dr. Julian Hosp, CEO and co-founder of decentralized platform Cake Group said on X. The supposed liquidation over Sunday and early Monday has drawn the crypto community's ire. The said time frame is generally characterized by weak liquidity or the ability of the market to absorb large orders at stable prices. https://www.coindesk.com/markets/2024/08/05/ether-slides-20-as-trading-firm-moves-46m-in-eth/

2024-08-04 15:16

Crypto bulls lost nearly $200 million in the past 24 hours as the week’s sell-off worsened over the weekend. Bitcoin slumped under $60,000 in early U.S. hours Sunday as a market sell-off continued into its fourth day, with bullish futures bets losing nearly $200 million in the past 24 hours. Ether (ETH) fell under $2,900, retracing all gains from its run to $3,400 in July as spot ETH exchange-traded funds (ETFs) were approved for trading in the U.S. Bitcoin slumped under $60,000 in early U.S. hours Sunday as a market sell-off continued into its fourth day, with bullish futures bets losing nearly $200 million in the past 24 hours. BTC dropped 4% in the past 24 hours, CoinGecko data shows, reaching a three-week low to at $59,400. Among majors, Solana’s SOL and dogecoin (DOGE) dropped more than 9%. BNB Chain’s BNB, xrp (XRP) and Cardano’s ADA fell at least 6%. Toncoin (TON) fared relatively better with a 1.8% loss. Ether (ETH) fell under $2,900, retracing all gains from its run to $3,400 in July as spot ETH exchange-traded funds (ETFs) were approved for trading in the U.S. The products have recorded net outflows on six days out of nine days of trading, SoSoValue data shows, seeing $510 million in total net outflows since launch. The broad-based CoinDesk 20 (CD20), a liquid index that tracks the largest tokens, minus stablecoins, fell 5.73%. Bullish futures bets lost nearly $200 million, CoinGlass data shows, as more than 97,000 traders were liquidated in the past 24 hours on the sudden market movements. ETH longs led losses at $55 million, followed by bitcoin longs at $43 million, the data shows. Some traders earlier cautioned of a possible BTC move to the $55,000 level, as reported on Friday, amid geopolitical tensions in the Middle East and dampened sentiment for risk assets such as technology stocks. https://www.coindesk.com/markets/2024/08/04/bitcoin-plunges-under-60k-crypto-bulls-lose-200m-as-dogecoin-solana-tokens-drop-10/

2024-08-02 15:39

Likely also hitting prices was the movement of nearly $2 billion of BTC and ETH in wallets linked with Genesis Trading. Bitcoin's (BTC) attempt at even a modest early rally during U.S. trading hours Friday was quickly snuffed out, the price dropping 4% in about the past ninety minutes alongside a major slump in equity markets. A weak July U.S. jobs report earlier Friday sent bond yields and the dollar plunging – the sort of action that often sends risk assets like stocks and bitcoin into the green, but it's not the case today. Just ahead of the noon hour in the U.S., the Nasdaq is down 3.1% and S&P 500 2.7%, led by an 11% post-earnings decline in Amazon (AMZN) and a 5% drop in Nvidia (NVDA). The Volatility Index (VIX) is up a whopping 54% today. Bitcoin managed a small gain to above $65,000 at one point but has succumbed to the risk-off mood, tumbling back to $62,900 at press time, down nearly 2% over the past 24 hours. The broader CoinDesk 20 Index is suffering even more, off just shy of 3%. Among those leading the way lower are ether (ETH), solana (SOL), uniswap (UNI) and chainlink (LINK), each sporting declines of 4%-5%. Setting the dour mood even before the U.S. jobs report was a continuing plunge in Japan, where the Nikkei fell 5.8% on Friday following a 4%+ decline a day earlier. The selloff appears to be in response to the most minor of monetary tightening actions on Wednesday by the Bank of Japan, which lifted its benchmark lending rate to 0.25% from a previous range of 0%-0.1%. Genesis Trading bankruptcy rears its head again Adding to the bearish action was the movement of 16,600 bitcoin (roughly $1.1 billion) and 166,300 ether (roughly $521 million) from wallets linked with bankrupt Genesis Trading. This action, according to Arkham Intelligence, is likely for in-kind repayments to creditors. Indeed, at least one creditor took to X to announce that he had received a modest distribution from the bankrupt Genesis estate. Having already suffered the sale of 50,000 bitcoin by the German government in early July, the beginning of distributions from bankrupt exchange Mt. Gox, and looming sales from the U.S. government's BTC stash, the Genesis action can now be added to the growing list of supply shocks for the crypto market. https://www.coindesk.com/markets/2024/08/02/bitcoin-slumps-below-63k-altcoins-rekt-as-crypto-succumbs-to-risk-off-mood/

2024-08-02 15:11

The move will take effect on Wednesday and will be open to clients with a net worth of at least $1.5 million. Morgan Stanley is making the move in response to demands from its clients. The January approval of bitcoin ETFs raised hopes that they would attract the deep pockets of financial institutions to cryptocurrency. Large firms often have lengthy compliance and review processes to undertake before they approve funds to be offered to their clients. Wall Street giant Morgan Stanley's (MS) advisers will be able to offer bitcoin (BTC) exchange-traded funds (ETFs) to wealthy clients starting Wednesday, according to CNBC. Morgan Stanley is allowing its 15,000+ financial advisers to sell shares of BlackRock's IBIT and Fidelity's FBTC, CNBC reported on Friday, citing people familiar with the matter. Clients will need to have a net worth of at least $1.5 million. January's approval of spot bitcoin ETFs in the U.S. brought hopes the investment vehicles would attract the deep pockets of financial institutions to cryptocurrency. However, major companies like Morgan Stanley often have lengthy compliance and review processes to undertake before they approve funds to be offered to their clients. The bank, which holds $1.5 trillion in assets under management (AUM), made the move in response to demand from clients, according to the report. Morgan Stanley held $269.9 million of Grayscale’s Bitcoin Trust (GBTC) as of March 31, a sign that it may have planned to offer ETFs to clients at some point. The bank did not immediately respond to CoinDesk's request for comment. Read More: Investors Added Money to Bitcoin ETFs Even as Prices Slipped 7% in June https://www.coindesk.com/business/2024/08/02/morgan-stanley-to-offer-bitcoin-etfs-to-wealthy-clients-cnbc/

2024-08-02 12:44

The price of bitcoin initially showed little reaction to the soft data even as traders quickly amped up bets on big Fed rate cuts in the second half of the year. The jobs market softened appreciably in July with the U.S. adding just 114,000 jobs during the month and the unemployment rate rising to 4.3%, according to the Bureau of Labor Statistics. Those 114,000 jobs were well shy of expectations for 175,000 and down from 179,000 in June (itself revised lower from an originally reported 206,000). The unemployment rate of 4.3% was up from 4.1% in June and above forecasts for 4.1%. The price of bitcoin (BTC) is about flat from just before the numbers hit, now trading at $64,500, and little-changed from 24 hours ago. Reaction in traditional markets was far bigger, with the 10-year Treasury yield tumbling 15 basis points to 3.83% and the two-year yield a full 23 basis points to 3.93% – both levels the lowest in more than a year. Stocks aren't loving the numbers nearly as much, with Nasdaq futures now down 2.3% and S&P 500 lower by 1.6%. Also on the move are the dollar, which has sunk 0.6%, and gold, which has risen 1.3% to a new record high of $2,513 per ounce. Checking other report details, average hourly earnings rose 0.2% in July, shy of 0.3% expected, and 0.3% in June. On an annual basis, average hourly earnings were higher by 3.6% versus 3.7% expected and 3.8% in June. Average weekly hours also missed expectations, coming in at 34.2 against forecasts for 34.3 and 34.3 in June. Having already fully priced in a 25 basis point Federal Reserve rate cut in September, traders are quickly amping up bets on an even larger move. According to CME FedWatch, there's now a 70% chance of a 50 basis point Fed cut in September versus only a 22% chance one day ago. A check of the December meeting shows traders beginning to place bets on a total of 125 basis points in rate cuts between now and the end of the year. One day ago, the overwhelming odds were for just 75 basis points of rate cuts in 2024. https://www.coindesk.com/markets/2024/08/02/us-added-just-114k-jobs-in-july-unemployment-rate-shoots-up-to-43/

2024-08-02 11:52

The developers said the team’s positions were “targeted” and they will create an operational DAO to take ownership of the Kujira Treasury and core protocols. Lack of risk management in financial bets by the Kujira Foundation led to a 55% drop in KUJI token prices within 24 hours. Liquidations of leveraged positions by Kujira's operational wallet resulted in significant losses and further price declines. Kujira plans to establish a DAO to manage its treasury and core protocols, aiming to reduce debt and increase transparency. The team behind Kujira, a decentralized finance (DeFi)-focused blockchain, put up leveraged liquidity positions that backfired, wiping 55% off the value of the network's KUJI tokens in 24 hours. Wallets belonging to the Kujira Foundation, which builds and contributes to running Cosmos-based Kujira, started to see their KUJI holdings automatically liquidated on Thursday as some of their leveraged positions on the protocol became bad debt to the tune of millions of dollars. The liquidations occurred as loans taken by Kujira from their publicly allocated KUJI tokens became undercollateralized during a period of general market volatility. The liquidations sent KUJI lower, leading to more liquidations, even lower prices and a downward spiral. Liquidations are the automatic closure of a trader’s leveraged position due to a partial or total loss of their initial margin. They can be stopped in time if a trader tops up funds to keep their position open. In a Telegram broadcast message on Thursday, a Kujira team member said the leverage positions were taken out in the hope they would drive value across the network’s set of applications. “As a team, we thought the best use of a portion of ops funds would be to leverage and deploy across the ecosystem to bootstrap liquidity and activity,” a @team_kujira member wrote on Telegram. "We genuinely felt like this was the correct course of action.” “Sadly this coincided with various attacks. Not trying to feel sorry for ourselves but just explaining the sequence of events. People targetted the team positions, and it’s been a constant fight since these positions were created,” they wrote. Kujira had more than $124 million worth of funds locked at its March 2024 peak. The value was down to $50 million earlier this week and $35 million on Friday morning following the KUJI token liquidations. In a Friday post on X, the team said it would create a decentralized autonomous organization (DAO) – an organization managed in whole or in part using a blockchain-based voting system – to take ownership of the Kujira Treasury and core protocols “with an initial mandate to safely reduce debt.” It said there was 14 million KUJI, worth $5.5 million at current prices, in the treasury. “This DAO will also assume control of the configuration of the core Kujira Protocols,” the team wrote. “Combined with upcoming admin dashboards, this will create transparency over how these protocols run, and allow the community to propose changes that will be voted on by members of the DAO.” https://www.coindesk.com/markets/2024/08/02/kujira-foundations-tokens-stung-by-its-own-leveraged-positions-as-bets-backfire/