The crypto market is back under pressure after a wave of selling erased last weekend’s gains. Investor sentiment has fallen into extreme fear territory, reflecting growing caution amid heightened volatility.
The pressure was driven by a combination of large-scale sell-offs and position adjustments in the derivatives market, significantly impacting highly leveraged traders.
$200 Million Liquidated in One Hour
In the derivatives market, long positions worth approximately $200 million were liquidated within just one hour, as reported by Watcher.Guru. The rapid price movement triggered a series of margin calls and accelerated selling pressure.
At the same time, Bitcoin corrected and erased most of its previous gains, dragging the broader crypto market lower. The Fear & Greed Index fell back into the Fear zone, signaling a more defensive stance from both retail and institutional investors.
Selling Activity from Major Players
Several on-chain transactions have drawn market attention:
1. Vitalik Buterin Reduces ETH Exposure
Data from Arkham Intelligence shows that a wallet associated with Ethereum co-founder Vitalik Buterin exchanged Wrapped Ethereum (WETH) for several stablecoins, including EUROC, LUSD, PYUSD, GHO, and USDTB, via CoW Protocol. The transactions took place when ETH was trading around $1,864.
Despite reducing his ETH exposure, Buterin remains active in advancing Ethereum’s technical development, including promoting the concept of intent-based security aimed at improving smart contract security and user experience.
2. Bitdeer Sells 943 BTC
Bitcoin mining company Bitdeer reportedly sold 943 BTC. This move lowered the company’s ranking among the largest corporate Bitcoin holders. The sale is viewed as a risk management measure and an effort to strengthen liquidity amid uncertain macroeconomic conditions.
Regulatory Developments: Stablecoins and the Clarity Act
On the regulatory front, U.S. government scrutiny of the crypto industry is increasing, particularly regarding stablecoins.
The White House has held another meeting on crypto policy, while the SEC introduced new rules for broker-dealers handling stablecoins, including a 2% asset valuation adjustment requirement. This policy could raise capital requirements and tighten how fiat-backed digital assets are managed.
Amid these pressures, Ripple CEO Brad Garlinghouse expressed optimism about the potential passage of the “Clarity Act.” He believes the chances of approval are relatively high and that the bill could provide the legal certainty long sought by the U.S. crypto industry.
Conclusion
Overall, the market is currently in a consolidation phase with a defensive sentiment. The combination of price pressure, large-player activity, and regulatory uncertainty suggests volatility may persist in the near term.
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