Dow Jones drops another thousand points, Federal Reserve official reassures: No recession in sight

Yesterday, the US stock market continued its bloodbath, with the Dow plunging a thousand points. Federal Reserve officials stepped in to reassure the market, stating that "the economy is not in recession." The cryptocurrency market also suffered a brutal sell-off, with rumors circulating that Jump Trading is conducting a major liquidation, causing ETH to plummet by 20%.

Arthur Hayes: I heard that a big player has fallen, selling off all their coins.

Fed Officials Say No Recession on the Horizon

Chicago Federal Reserve Bank President Austan Goolsbee played down recession concerns in an interview with CNBC yesterday, stating that Fed officials need to be attentive to changes in the economic environment to avoid overly restrictive interest rates.

The employment data is weaker than expected, but it doesn't look like a recession.

He also mentioned that the Fed's current policy is restrictive, but such a stance should only be taken in the case of an overheating economy. If any aspect deteriorates, the Fed will address it.

Meanwhile, San Francisco Federal Reserve Bank President Marry Daly stated on Monday that she believes there will be a need for policy adjustments by the Fed in the next quarter. However, the extent and timing of these adjustments will depend mainly on the information received.

In my view, we have confirmed that the labor market is slowing down. It is crucial that we do not let it slow down too much to the point of stagnation.

Monday's data showed that with improvements in orders and employment, the U.S. non-manufacturing ISM index rose by 2.6 points to 51.4 in July, rebounding from a four-year low and crossing back above the 50 mark.

Massive Liquidation in the Crypto Market, Hundreds of Thousands Forced to Liquidate Positions

The crypto market also faced a bloodbath, with rumors circulating of Jump Trading conducting a major liquidation, leading to a sharp 20% drop in ETH.

Downward spiral! ETH plummeted to 2,111 this morning, with Jump Trading liquidating Ether.

According to the Coinglass heatmap, liquidations amounted to a staggering $1.09 billion in the past 24 hours, forcing 270,000 people to close their positions, with Bitcoin accounting for $412 million and Ether $340 million.

Crypto Market Bloodbath: Exchanges Liquidate Over $1 Billion in a Single Day, DeFi Liquidations Reach $350 Million, Setting a Yearly Record