ETH continues to plummet! This morning, it dropped to 2,111, with Jump Trading liquidating Ether.
Since the launch of the Ethereum spot ETF on 7/23, the performance of ETH has not met expectations. ETHE has seen outflows of $2.1 billion as of 8/2. Over the weekend, there were reports of the prominent crypto market maker Jump Trading liquidating Ether, causing ETH to drop to $2,630. The decline since the listing of ETH has exceeded 20%.
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Jump Trading Settles Ether
According to the analysis by on-chain analyst Yu Jin, from July 25 to the morning of August 4, well-known crypto market maker Jump Trading has redeemed 83,000 wstETH for 97,500 ETH, with 66,000 ETH worth about $191.4 million already transferred to exchanges.
There are still 37,600 wstETH remaining in Jump Trading's wstETH storage address; 11,500 stETH in the redeemed ETH address is currently being converted to ETH; and 20,000 ETH in the address where ETH is transferred to exchanges is pending to be gradually deposited into the exchange.
According to a report by Reuters in June, the U.S. Commodity Futures Trading Commission (CFTC) is investigating Jump Trading's involvement in the cryptocurrency space.
Market Sentiment Dampens, ETH Continues to Fall
The Ethereum spot ETF was officially launched on July 23, starting to decline from the previous day's high of $3,541, experiencing a "sell the news" market trend, with a current decline of 24%.
Grayscale Ethereum Trust (ETHE) has seen outflows of $2.1 billion as of August 2.
Why is ETHE eager to sell as Ethereum plummets?
Although Jump Trading's overall selling amount is not as much as ETHE, the weekend has lower liquidity, coupled with an extremely low overall investment sentiment, causing Ethereum to drop to $2,630 on Sunday. It plummeted nearly 20% after the Asian stock market opened this morning, briefly touching $2,111.
Black Friday saw a market bloodbath, with BTC plummeting to $61K and ETH dropping below $3,000.
Japanese stocks plummeted by 6%, forced liquidation in carry trades, and the yen continued to appreciate.
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