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The 18% drop in the cryptocurrency market in the last 24 hours has caused a major shockwave that has led to huge liquidations of leveraged positions. With the price of Ethereum dropping by over 20%, several rumors started circulating that Tron founder Justin Sun had been the victim of liquidations of over $152 million in leveraged positions. However, the Tron founder denied these developments, clarifying the liquidation process.
Justin Sun clarifies liquidation situation
The recent selloff in the cryptocurrency market during Asian trading hours on Monday led to more than $1 billion in total losses Cryptocurrency Market LiquidationsMost traders with long leveraged positions had Rekt with rumors suggesting Justin Sun was one of them.
Justin Sun’s potential liquidation could be the reason for this unpleasant -20% wick $ETH https://t.co/amPsbnmrbu
— Johnny (@CryptoGodJohn) August 5, 2024
The Tron founder, however, denied rumors that he and his team rarely engage in leveraged trading strategies. According to Justin Sun, leveraged trading does not bring any benefit to the cryptocurrency market.
Instead, the Tron founder said that he and his team are focusing more on activities that support the crypto industry and entrepreneurs. He added that the Tron team remains focused on activities such as working on blockchain projects, staking, running nodes, or assisting project teams in providing liquidity.
Rumors that our positions are being liquidated are false. We rarely engage in leveraged trading strategies because we believe that these transactions do not significantly benefit the industry. Instead, we prefer to engage in activities that provide greater support to the industry and…
– HE Justin Sun 孙宇晨 (@justinsuntron) August 5, 2024
Also read: Cryptocurrency Prices Today, August 5: BTC Drops 10%, ETH Crashes 20%, Altcoins Are Down
Liquidations are on the rise
There is high volatility in the cryptocurrency market because Bitcoin Price The stock price dropped to as low as $50,000. However, it recovered at press time to $52,800. Daily trading volumes jumped 161% to a staggering $71.8 billion.
Bitcoin critic Peter Schiff believes things could get worse when U.S. futures begin trading Monday. U.S. futures are already down sharply right now. Schiff predicts a big selloff ahead Bitcoin ETF market, expecting a 30% gap to the downside.
As I warned #Bitcoin has broken through the March low. It is now trading at $51,000. That’s down 20% from where it was trading when the #BitcoinETF closed on Fridays. So it’s a #Crypto Black Monday. Attention below! https://t.co/CK1rHutgly
-Peter Schiff (@PeterSchiff) August 5, 2024
With fears of a recession and a hard landing for the US economy rife, some reports suggest that the Fed could step in before September and announce a 50bp rate cut.
Also read: Jump Trading Abandons Ethereum, Which Cryptocurrency Will Be Next?
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a deep understanding of financial markets. His interest in economics and finance has led him to focus on the emerging markets of Blockchain technology and cryptocurrencies. He is committed to continuous learning and stays motivated by sharing the knowledge he gains. In his free time, Bhushan enjoys reading mystery novels and occasionally explores his culinary skills.
Disclaimer: The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication does not assume any responsibility for your personal financial losses.
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