QCP Capital's latest report attributes the recent cryptocurrency downturn and Ethereum's drop to heavy selling of ETH.
The report, dated August 5, cites major players like Jump Trading and Paradigm VC as significant contributors to the market decline.
The panic selling that occurred during the Asian trading hours led to Bitcoin falling to $49,000 and Ethereum dropping to $2,100. QCP Capital also noted a 30% increase in front-end ETH trading volume during this period.
The report highlights that broader market sentiment worsened following disappointing US unemployment data, with the VIX index rising to 50—a level not seen since the COVID-19 panic and the 2008 financial crisis.
The USD/JPY 1M at-the-money volume also spiked to 16%, potentially increasing volatility. Additionally, global risk sentiment has been impacted by geopolitical events, including the recent killing of a Hamas leader by Israel.
Supporting these findings, 0xScope Protocol reported that market makers have deposited over 130,000 ETH into centralized exchanges. This influx occurred while Ethereum’s price dropped from $3,000 to $2,100.
Furthermore, CoinShares reported that Ethereum has experienced net outflows totaling $430 million since the launch of Ethereum ETFs, with recent outflows amounting to $146 million.
Despite initial optimism about the ETF launch, Ethereum has lost 27% of its value over the past week, falling from $3,300 to a low of $2,100 before rebounding slightly to $2,400.
Tether’s USDT, the largest stablecoin, continues to strengthen its market position, with its market capitalization nearing $120 billion for the first time.
A cryptocurrency investor earned $131.72 million by buying Ether during the 2022 market downturn and holding onto it through two years of market uncertainty.
Ripple Chairman Chris Larsen has recently moved 20 million XRP as part of a larger shuffle involving 50 million tokens.
Crypto-focused travel booking platform Travala has announced its integration with Solana, the fourth-largest blockchain by market cap, marking its third network addition after Ethereum and BNB Chain. CEO Juan Otero revealed this development during a panel at Solana Breakpoint in Singapore.