The depreciation of the first cryptocurrency caused the liquidation of long positions of traders in the amount of $ 600 million.
Ether lost about 20% of its value in a few hours. Traders who sought to get leverage on the air were the hardest hit by the fall: long positions on ETH worth more than $256 million were forcibly closed.
The community is discussing the involvement of a major player in the market dump, hinting at the liquidation of the Jump Crypto market maker. On August 4, Jump Crypto unlocked 120,000 wETH in Lido and implemented most of them, which gave an additional impetus to the collapse of the ether exchange rate.
Against the background of market volatility, the Robinhood platform has abandoned round-the-clock trading until further notice.
Recently, experts from the American cryptocurrency exchange Coinbase said that a downward trend has formed in the market. They predicted that the decrease in liquidity would lead to increased volatility of bitcoin this month.
Earlier, participants of the Polymarket prediction platform placed bets on the likely bitcoin exchange rate in August 2024. According to the platform, only 12% of users assumed that the first cryptocurrency would collapse to $50,000.