The culprit of the 8.5 circle crash turned out to be this.
Jump trading as a whole sold 440 million assets to the market, with Ethereum as the leading one.
Jump Trading's large-scale liquidation of Ethereum was also considered by the market to be the "culprit" of this round of plunge.
Why did JUMP Trading sell off so heavily?
Jump Trading is a high-frequency trading giant. Jump is a top market maker in the field of foreign exchange trading. It is involved in a large number of yen-related businesses. The sudden increase in interest rates of the yen against the US dollar has caused many "smart funds" who used to borrow low-interest yen to buy stocks to be forced to sell stocks to repay the yen.
So the change in the yen caused problems with his position. He is in the forced liquidation stage. He urgently needs funds to repay the yen.
Jump trading has targeted the assets in the circle with good liquidity.
And Jump's in-circle department JUMP CRYPTO has been in trouble and is under investigation. It was pointed out by the SEC that it was related to the collapse of LUNA and made an improper profit of 1.3 billion US dollars.
So at this time, the top management of JUMP decided to "abandon the car to save the coach" and let its sub-department jump crypto Sell all its assets, mainly Ethereum, to save Jump's yen market. The result was a major earthquake in the industry.
Jump's top management's move was really powerful and solved all its own problems. But Brother Nan must go to their X and scold them for a while.