Bitcoin’s price crashed toward $53,000, losing more than $17,000 since last Monday. This has been one of the cryptocurrency’s worst weekly performances in its entire history.
In the past 24 hours alone, a whopping $840 million worth of leverage positions were liquidated due to the market crash.
Earlier in the week, CryptoPotato outlined three possible reasons behind the bloodbath, including the weak US economy, the uncertainty regarding the fiscal policy of the US Federal Reserve, as well as funds flowing out of exchange-traded funds.
Now, Arthur Hayes, the former CEO and one of the co-founders of what was once the largest derivatives trading platform in the cryptocurrency industry, is speculating about another possible reason.
My TradFi birdies are telling me somebody big got smoked, and is dumping all #crypto. No idea if this is true, I won’t name names, but let the fam know if you are hearing the same?
My TradFi birdies are telling me somebody big got smoked, and is dumping all #crypto. No idea if this is true, I won’t name names, but let the fam know if you are hearing the same?????
— Arthur Hayes (@CryptoHayes) August 5, 2024
During the weekend, the popular trading firm Jump Crypto – the cryptocurrency arm of Jump Trading – started moving hundreds of millions of dollars worth of various coins, culminating in a $46 million transfer of ETH. This has led many to believe that the firm is liquidating its holdings.
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