The current crypto market crash is being directly linked to selling by Jump Trading, according to QCP Group, one of Singapore’s first digital asset trading groups.
The price of Ether (ETH) fell over 21% in the 24 hours leading up to 11:20 am UTC to trade at $2,252, according to Cointelegraph data.
The crash to an over five-month low was mainly caused by Ether selling from Jump Trading and Paradigm VC, according to an Aug. 5 report by QCP Group, which wrote:
“The immediate trigger in crypto seems to have been aggressive ETH selling from Jump Trading and Paradigm VC. The move was probably exacerbated by market makers scrambling to cut short gamma as front-end ETH volumes spiked more than 30% to 120%!”
Ether’s price is struggling to remain above the $2,200 psychological mark, and a potential move below it could trigger more panic selling among crypto investors, leading to lower lows.
The sharp decline comes despite the launch of the first spot Ether exchange-traded funds (ETFs) in the United States, which debuted for trading on July 23.
Related: Analysts warn of further Bitcoin downside — Could BTC revisit $42K?
Jump Trading continues selling Ether
During the past week, Jump Crypto, the crypto division of Jump Trading, has shifted hundreds of millions of dollars worth of digital assets to crypto exchanges in preparation for a sizable sale, as reported by Cointelegraph.
Jump Trading has sold over $377 million worth of Wrapped Lido Staked ETH (wstETH) since July 24, when Ether’s price started to decline.
The firm is looking to sell a total of $481 million worth wstETH, according to an Aug. 5 X post by Lookonchain, which wrote:
“Jump Trading is selling 120,695 wstETH ($481M) and has sold 83K $wstETH ($377M) since July 24, leaving 37,604 $wstETH($104M). The market also began to fall after July 24, falling by more than 33%!”Ether price, Jump Trading selling patterns. Source: Lookonchain
Jump Trading is reportedly being investigated by the US Commodities and Futures Trading Commission (CFTC). The firm’s president, Kanav Kariya, stepped down from his role on June 24.
Jump Trading, Binance Deposits. Source:…..
