After being hit hard over the weekend, cryptocurrencies continued to be aggressively sold on Monday, falling below $52,000 and dropping nearly 12% during the day, with a drop of more than 13% at one point. Over the past seven days as of last Sunday, Bitcoin has fallen by a cumulative 13.1%, the largest drop since the bankruptcy of FTX, with other currencies such as Ethereum and Dogecoin following suit. $Bitcoin (BTC.CC)$It fell below $52,000, dropping nearly 12% during the day, and dropping nearly $2,300, with a drop of more than 13% during the day.$Ethereum (ETH.CC)$Over the past seven days as of last Sunday, Bitcoin has fallen by a cumulative 13.1%, the largest drop since the bankruptcy of FTX, with other currencies such as Ethereum and Dogecoin following suit.

Over the past seven days as of last Sunday, Bitcoin has fallen by a cumulative 13.1%, the largest drop since the bankruptcy of FTX, with other currencies such as Ethereum and Dogecoin following suit.$Dogecoin (DOGE.CC)$Other currencies such as Ethereum and Dogecoin followed suit and fell.

Media analysis indicates that this wave of selling seems to originate from a 'time-triggered' algorithmic program that triggered sell orders at the same time for the past seven trading days (10 a.m. Eastern Time in the United States, just after the US market opens). It's worth noting that this algorithm was still running over the weekend, which may have caused a wave of HFT-driven selling and shorting, forcing leveraged long investors to surrender.

Data shows that Jump Trading, a cryptocurrency 'market maker,' is liquidating positions worth hundreds of millions of dollars by selling and shorting billions of dollars worth of various cryptocurrencies during the market's least liquid periods, while repeatedly eating up buy orders to ensure the worst possible execution price, attempting to aggressively reprice cryptocurrencies.

Since August 3rd, the inflow of funds marked by the address of Jump Trading's cryptocurrency department, Jump Crypto, is about $0.3 billion, while the wallet of the trading company has outflowed about $80 million in the same period, flowing mainly to exchanges such as Coinbase, Gate.io, and Binance, and the flow of funds is still continuing.$Coinbase (COIN.US)$Since August 3rd, the inflow of funds marked by the address of Jump Trading's cryptocurrency department, Jump Crypto, is about $0.3 billion, while the wallet of the trading company has outflowed about $80 million in the same period, flowing mainly to exchanges such as Coinbase, Gate.io, and Binance, and the flow of funds is still continuing.

Behind this panic liquidation are mainly driven by factors such as global stock market turbulence and geopolitical risks, according to analysis:

1. The US stock market fell sharply last Friday, and the USD-to-JPY exchange rate plummeted, with the market expecting a sharp drop in Japanese stocks after they opened on Monday. Roughly estimated, on the basis of a 10% drop in the TOPIX index over the past two days, there may be an additional 6-8% downside. After the Bank of Japan's recent policy misstep, Japanese stocks have entered a bear market in the past few days. This may force the Bank of Japan to resume easing and cut interest rates again shortly after a slight hike, at which point the Japanese economy may once again fall into recession.

2. The market is concerned that the conflict between Iran and Israel may escalate. According to CCTV News, the speaker of the Iranian parliament said on the 4th that Iran will respond strongly to the incident, and Israel and the United States will pay the price for the death of Haneya. On the same day, Israel's Minister of Defense said that Israel is prepared to respond to the attack. Analysis indicates that every time the conflict escalates, Bitcoin sees a sharp drop. It is expected that a similar drop will occur again when the next 'conflict' takes place.

Editor/Somer