Key Takeaways:
- The Crypto Fear Index moved to “fear” following a major drop in Ether (ETH), the largest since May 2021.
- Over $1 billion in crypto futures were liquidated, including $304 million in Ether futures, affecting over 275,000 traders.
- Market turmoil was influenced by geopolitical tensions, tech earnings, a stronger yen, and rumors about Jump Trading exiting crypto.
The Crypto Fear Index shifted to “fear” as Ether (ETH) experienced its worst single-day drop since May 2021.
Over $1 billion in crypto futures were liquidated, with Ether futures alone seeing $304 million in liquidations.
🚨 BREAKING 🚨
— Ash Crypto (@Ashcryptoreal) August 5, 2024
NEARLY $1.1 BILLION LIQUIDATED
FROM CRYPTO MARKET IN JUST
PAST 24 HOURS.
AVOID FUTURES AT ANY COST. pic.twitter.com/qdrYIZ494m
More than 275,000 traders were affected, including a $27 million order on Huobi. Bitcoin (BTC) and Ether prices plummeted, with Bitcoin falling over 11% and Ether up to 25%.
The market turmoil was exacerbated by a stronger yen and rumors of Jump Trading exiting the crypto business.
The crypto fear and greed index hit its lowest since early July.
Bitcoin Fear and Greed Index is 26 — Fear
— Bitcoin Fear and Greed Index (@BitcoinFear) August 5, 2024
Current price: $58,110 pic.twitter.com/ZsB4p6MEix
Liquidations occur when traders can’t meet margin requirements, forcing exchanges to close leveraged positions.
The sell-off was driven by geopolitical tensions and disappointing tech earnings, leading to a retreat from risky assets.
The yen’s surge and expectations of further rate hikes by the Bank of Japan worsened the situation.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
With a knack for engaging storytelling and strategic content creation, Fleming is dedicated to educating and inspiring his audience with insightful analysis on cryptocurrencies, NFTs, and the future of digital finance.
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