After only 20 minutes of trading, Bitcoin ETFs have clocked more than $1.3 billion in trading volume, with iShares Bitcoin Trust seeing the highest churn at upward of $875 million, according to the post.
The overnight sell-off compounded a worsening macro environment that has rattled all asset classes. The S&P 500 stock index is down more than 5% since Aug. 1.
According to the report, “Macro sentiment has also worsened following poor US unemployment data last Friday. Additionally, huge unwinds across all assets [have] caused volatility to spike sharply.”
Japan’s central bank raised interest rates on July 30, forcing traders to quickly unwind positions that sought to capitalize on the country’s cheap borrowing costs.
“The market structure, including fiat-to-crypto on-ramps, has been weak for months […] it’s unlikely that significant players will invest amid high volatility and unpredictable prices. Many still need to exit positions and deleverage their portfolios.”
