The crypto market wiped out a total of $487 million in long positions within minutes on Wednesday morning in Asia, according to a report from The Block. Bitcoin fell 1.5% to $84,200 and briefly dipped below the $84,000 mark. Data shared by the @WatcherGuru account on X shows that this decline erased $360 million in Bitcoin long positions within the first 10 minutes of breaking that price threshold. Ethereum followed a similar pattern, dropping below $2,600 and liquidating $400 million worth of long positions in 20 minutes.
One address felt the immediate impact of this price action. A trader using wallet 0xcbab lost their entire 3,728 ETH long position valued at $9.85 million in just three minutes. However, the move by leveraged buyers coincided with massive bets placed in the opposite direction.
Suspicions of Insider Information on Hyperliquid
On-chain analytics account @lookonchain tracked maneuvers from four fresh wallets. The four anonymous entities deposited 1 million USDC onto the Hyperliquid platform and immediately opened 40x short positions across 148.49 BTC worth $12.5 million just before the market crash. Opening short positions with such high leverage at the exact right moment has fueled speculation of insider information.
The profit-taking coincided with movements by state entities. The U.S. government transferred 834 BTC valued at $71.56 million and 40,285 BNB valued at $31.63 million today. Of that amount, the 834 BTC was deposited directly to the CoinbasePrime platform.
Hormuz Geopolitics Weigh on Markets
The downturn in crypto assets aligned with macro volatility spurred by escalating Iranian attacks on tankers in the Strait of Hormuz. Brent crude responded to the disrupted shipping route by climbing nearly 1% toward $101.50 per barrel.
Geopolitical pressure prompted investors to rotate out of risk assets. The U.S. dollar gained against all G-10 currencies, while the 10-year Treasury yield rose three basis points to 5.31%. This tightening pressure spilled into Asian equities, where the MSCI Asia Pacific Index slipped 0.6%, contrasting with record closing highs for the S&P 500 and Nasdaq 100 on Wall Street in the prior trading session.
Market participants are now awaiting the release of the Federal Reserve’s September meeting minutes - when the central bank raised interest rates by 0.25%. Softer employment data has diminished the likelihood of further rate hikes this month. For highly leveraged crypto speculators, the escalation in the Middle East emptied portfolios far faster than any interest rate decision could next month.
Sourced from CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
