What happened in Crypto in the last 12h:

• The odds of a 50 bps rate cut by September have increased to 73.5%. Some are calling for an "emergency rate cut" before the meeting, but rate cuts in between Fed meetings are very rare.

• The estimated "real number" liquidated from the crypto market in the past 24 hours is between $7-9 billion, making it the largest liquidation event since May 19, 2021. (Exchanges do not real full liquidation data)

• Japan's Nikkei 225 surged over 10% at the open, rebounding after its largest 2-day drop in history.

• Regarding US data, the focus is now on the job market. Initial jobless claims to be released this Thursday, although not typically market-moving, could influence market sentiment.

• Bitcoin and Ethereum ETFs saw a massive $6 billion in trading volume during the August 5 market dip.

• Spot ETH ETF inflows were positive for the day (>+$1.7M). Today marked the lowest Grayscale $ETHE outflow day, continuing the downtrend from the past few days.

• Vitalik Buterin recently shared an optimistic outlook on interoperability projects. This ties into improving user experience, and $ZRO is seen as a first mover in this sector.

• An OpenAI spokesperson stated that there are no plans to announce ChatGPT-5 at the DevDay scheduled for October. $WLD

[Note to self] With the vast majority of crypto buyers currently at a loss, observing whether ETF investors sell into this pullback or buy more will serve as an indicator of short-term market direction.

H/T - @spacepixel