Asia Morning Briefing: Crypto Markets Stabilize Post $20B Liquidation Event
Market Update
- Bitcoin is stable at $115,157 after a volatile weekend.
- Ether rose to $4,146, recovering from lows near $3,700.
- Solana increased by 11% to $196, Bittensor surged 28%, and Cronos jumped 11% as capital returned to high-beta assets post-leverage flush.
Crypto Liquidation Event
- The recent market volatility was influenced by the largest crypto liquidation event in history, affecting over 6,300 wallets.
- Washington and Beijing worked to ease trade tensions, aiding recovery.
- Leverage on long-tail tokens caused severe liquidity wipeouts but allowed for a quicker reset.
- Staking provided some stability with 30% of ETH supply locked in validators.
Binance's Role in Market Turmoil
- Binance faced criticism over infrastructure issues during heavy trading, leading to decoupling of wrapped assets from their underlying prices.
- USDe dropped to $0.65 on Binance but remained stable on other platforms like Curve.
- Binance acknowledged platform issues and has since moved to oracle-based collateral pricing.
- Compensation of over $280 million has been paid to affected users.
Market Movement
- BTC: Bitcoin steadied around $115,000 after a 9% drop on Friday and a 4% recovery over the weekend.
- ETH: Ether rebounded to about $4,150, recovering faster than Bitcoin as leveraged positions were cleared.
- Gold: Gold reached a record $4,059.87 per ounce amid U.S.–China trade tensions and geopolitical risks.
Additional News
- Aster Airdrop delayed due to 'data inconsistencies' with token allocations.
- Securitize in talks with Cantor SPAC regarding tokenization initiatives.
- Major banks like Bank of America and Goldman Sachs are exploring a joint stablecoin project.
