According to Wu, QCP Capital pointed out that on August 5, 2024, the crypto market was hit by a storm, with BTC and ETH falling to lows of 49,000 and 2,116 respectively. The massive ETH sell-off by Jump Trading and Paradigm VC, as well as the front-end ETH implied volatility soaring to 120%, may be the direct cause of this decline.
Despite the sharp increase in market volatility due to the poor US unemployment data last Friday, the deteriorating macroeconomic situation and the intensification of global risk aversion, the forward basis and financing rates remained stable.
