Key Takeaways:
- Jump Trading’s sell-off triggered a significant 14.57% drop in Ether’s price.
- Ether is struggling to maintain the critical $2,200 support level.
- Geopolitical tensions and disappointing U.S. unemployment data exacerbate market uncertainty.
YEREVAN (CoinChapter.com) — The crypto market recently experienced a significant downturn after large-scale selling by Jump Trading. A report by QCP Group indicated that this activity led to a steep drop in the price of Ether (ETH), which fell by 14.57% in 24 hours, reaching $2,430.89. This decline reflects a significant drop, although not the lowest point for Ether in more than five months, as the current market cap stands at $292,337,721,200.
Jump Trading, along with Paradigm VC, initiated a substantial sell-off of Ether, causing market makers to react quickly. QCP Group noted,
“The immediate trigger in crypto seems to have been aggressive ETH selling from Jump Trading and Paradigm VC.”
This caused front-end ETH volumes to surge by over 30%, up to 120%.
Jump Trading Offloads $377M in wstETH, Signals More to Come
Jump Crypto, the digital asset division of Jump Trading, moved large amounts of Wrapped Lido Staked ETH (wstETH) to crypto exchanges. Since July 24, the firm has sold over $377 million worth of wstETH, coinciding with the decline in Ether’s price.
According to Lookonchain, Jump Trading plans to sell a total of $481 million in wstETH, with $104 million still to be sold.
Ether is struggling to stay above the $2,200 psychological level. A fall below this level could trigger more selling, leading to further declines in the market.
Macroeconomic Woes and Geopolitical Tensions Stir Crypto Market Uncertainty
The market downturn is also influenced by broader macroeconomic factors. QCP Group pointed to disappointing U.S. unemployment data as a significant factor. The volatility index (VIX) spiked to 50, a level only seen during the COVID-19 pandemic and the 2008 financial crisis, indicating increased market uncertainty.
Geopolitical tensions, particularly between Israel and Iran, have added to the global risk-off sentiment. The report stated,
“A global risk-off mood has also set in with Israel killing the Hamas leader over the weekend. Iran has vowed to take action, and the U.S. has actually started to deploy troops into the Middle East.”
Jump Trading is reportedly under investigation by the U.S. Commodities and Futures Trading Commission (CFTC). The firm’s president, Kanav Kariya, stepped down from his role on June 24. These events have added to the uncertainty surrounding the crypto market.
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