risk aversion

Wintermute: Nearly $3 billion in long positions have recently been liquidated, and market risk aversion is beginning to intensify

ChainCatcher news, the encrypted market maker Wintermute released a market research report indicating that recently, driven by ETF fund outflows, concerns over SOL unlocks, and liquidity issues following the Bybiy hack, the cryptocurrency market accelerated its decline when Trump announced new tariff policies, exacerbating trade war fears. Market risk aversion began to intensify, with nearly $3 billion in long leveraged positions being liquidated.The U.S. Securities and Exchange Commission (SEC) has recently significantly reduced its enforcement actions against cryptocurrency companies, including:Agreeing to withdraw its lawsuit against Coinbase;Ending the investigation into OpenSea;Concluding the investigation related to Robinhood's cryptocurrency listings;Suspending the investigation into Uniswap's facilitation of unregistered securities;Ending the nearly two-year investigation into Gemini's yield program;This regulatory thaw marks a significant reversal from the previous administration's approach, with the SEC seemingly reassessing its stance toward the cryptocurrency industry.Bitcoin ETF net outflows hit a record, with $2.5 billion flowing out last week, including a single-day outflow of $1 billion, bringing the total outflow for February to $3.3 billion (compared to the previous record of $343 million set in April 2024). The CME futures basis dropped from 22% in December to a low of 4% last week, significantly reducing the profitability of basis trading strategies. Futures indicators reflect this shift: open interest fell to $13 billion, and monthly trading volume dropped to $247 billion, with both sides at their lowest levels since October 2024.The significant market reversal following Trump's announcement of a "cryptocurrency strategic reserve" on Sunday reveals that the cryptocurrency market is now highly sensitive to administrative signals. The market's reaction exceeded the actual content of the announcement, which largely reiterated the executive order from January. The unwinding of Bitcoin ETF arbitrage strategies highlights the increasingly tight integration between traditional markets and the cryptocurrency market, with both sides now responding quickly to each other's movements. As institutional cryptocurrency products and platform services expand, these cross-market dynamics and competitive user activities may intensify.

4E: The three major U.S. stock indices fell together, Trump's trading "tide recedes," and market risk aversion increased

ChainCatcher news, according to 4E monitoring, as the U.S. election enters its final countdown, the three major U.S. stock indexes collectively fell on Monday while most investors remained on the sidelines. The S&P 500 index closed down 0.28%, the Dow fell 0.61%, and the Nasdaq dropped 0.33%. Given the tight race between Trump and Harris, supporters on both sides were eager to "place another bet" before Monday. After three consecutive days of double-digit declines, Trump's media technology group, which at one point fell 5% on Monday, ultimately closed up 12.37%. Meanwhile, bets favoring Harris's victory also increased, with solar and clean energy stocks collectively rising on Monday.The cryptocurrency market continued to decline under the weakening influence of the "Trump trade." As of the time of writing, Bitcoin was priced at $67,939, down 1.4%, and Ethereum was at $2,407, down 2.32%.In the forex and commodities sector, the "Trump trade" was scaled back, coupled with expectations of a 25 basis point rate cut by the Federal Reserve on Thursday, leading the dollar index to drop over 0.4% to below 104, hitting a two-week low and marking the largest decline in over a month, with non-dollar currencies rising broadly. Oil prices were supported by OPEC+'s announcement to delay production increases, with intraday gains exceeding nearly 3%. Gold prices were boosted by safe-haven demand due to the uncertainty of the U.S. election, expectations of a Fed rate cut, and the dollar index reaching a two-week low, with spot gold closing up 0.05% at the end of U.S. trading.In recent days, a series of polls have shown the gap in winning probabilities between Trump and Harris rapidly narrowing, with both sides' vote counts now very close. The market is concerned that controversial vote counting results may delay the election outcome by several days. Additionally, if Trump loses the election, his supporters may cite these data to "prove" election fraud, potentially inciting unrest. Another catalyst for safe-haven sentiment is the Federal Reserve's interest rate decision on Thursday, along with Powell's remarks at the press conference.As the two storms approach this week, market volatility has intensified, and demand for safe havens has increased. eeee.com is a financial trading platform that supports assets such as cryptocurrencies, stock indices, commodities like gold, and forex. Recently, it launched a USDT stablecoin financial product with an annualized return of 5.5%, providing investors with a potential safe-haven option. 4E reminds you to be aware of market volatility risks and to allocate assets wisely.

4E: The three major U.S. stock indices all fell, Trump's trading "tide recedes," and market risk aversion increased

ChainCatcher news, according to 4E monitoring, as the U.S. election enters its final countdown, the three major U.S. stock indices collectively fell on Monday while most investors remained on the sidelines. The S&P 500 index fell by 0.28%, the Dow Jones dropped by 0.61%, and the Nasdaq decreased by 0.33%. Given the tight race between Trump and Harris, supporters on both sides were eager to "place another bet" before Monday. After three consecutive days of double-digit declines, Trump's media technology group, which at one point fell by 5% on Monday, ultimately rose by 12.37%. Meanwhile, bets favoring Harris's victory also increased, with solar and clean energy concept stocks collectively rising on Monday.The cryptocurrency market experienced a broad decline due to the continued weakening of the "Trump trade." As of the time of writing, Bitcoin was priced at $67,939, down 1.4%, and Ethereum was at $2,407, down 2.32%.In the forex and commodities sector, the "Trump trade" was scaled back, coupled with expectations of a 25 basis point rate cut by the Federal Reserve on Thursday, causing the dollar index to drop over 0.4% to below 104, reaching a two-week low and marking the largest decline in over a month, with non-U.S. currencies rising broadly. Oil prices were supported by OPEC+'s announcement to delay production increases, with intraday gains of nearly 3%. Gold prices were boosted by safe-haven demand triggered by the uncertainty of the U.S. election, expectations of a Federal Reserve rate cut, and the dollar index hitting a two-week low, with spot gold closing up 0.05% at the end of U.S. trading.In recent days, a series of polls have shown that the gap in winning probabilities between Trump and Harris is rapidly narrowing, with both sides' vote counts now very close. The market is concerned that disputed vote counts could delay the election results by several days. Additionally, if Trump loses the election, his supporters may cite these data to "prove" election fraud, potentially inciting unrest. Another catalyst for safe-haven sentiment is the Federal Reserve's interest rate decision on Thursday, along with Powell's remarks at the press conference.As two storms approach this week, market volatility has increased, and demand for safe havens has risen. eeee.com is a financial trading platform that supports assets such as cryptocurrencies, stock indices, commodities like gold, and forex. It recently launched a USDT stablecoin financial product with an annualized yield of 5.5%, providing investors with potential hedging options. 4E reminds you to be aware of market volatility risks and to allocate assets wisely.
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