Why Is Crypto Down Today? The global cryptocurrency market took a hit, with its total capitalization dropping 3.7% over the past 24 hours to $2.15 trillion. Trading volume also saw a dip, recording $72.3 billion in transactions during the same period. Only two of the top 100 coins experienced gains: SUI, which rose 1.5% to $0.912, and Fasttoken (FTN), which increased by a modest 0.2% to $2.51.
On the downside, Artificial Superintelligence Alliance (FET) and BEAM were the biggest losers, each plunging 11.1%. Other significant drops included MANTRA (OM) at 11% and Akash Network (AKT) at 10.7%, with the remaining coins falling by 9.9% or less.
All top 10 cryptocurrencies by market cap ended up in the red. TONCOIN experienced the largest decline, falling 8.2% to $6.1, followed by Solana (SOL), which dropped 7.6% to $143.7. Dogecoin (DOGE) saw a 6.5% decrease, trading at $0.10194, while most of the top 10 experienced declines around 4%. Bitcoin (BTC) dropped 4%, trading at $58,648, while Ethereum (ETH) fell 4.1% to $2,550.
In addition to the market downturn, negative news surfaced as Celsius accused Tether of “fraudulent” Bitcoin transfers exceeding $2 billion. Celsius alleged that Tether breached contract terms and quickly liquidated BTC, which had been used as collateral. Tether’s CEO Paolo Ardoino denied the allegations, claiming the liquidation was executed at Celsius’ request.
Seven Indicted in U.S. for $300,000 Crypto Theft In a separate incident, seven individuals were indicted in the U.S. for stealing $300,000 worth of Bitcoin from a 61-year-old auto body shop owner in Queens, New York. The stolen Bitcoin was part of the victim’s retirement savings, worth 5.75 BTC (valued at $92,000 at the time).
The theft allegedly occurred in November 2022, when a 20-year-old California man, Aaron Peterson Jr., and his accomplices stole the funds and used them to purchase luxury items, including a diamond pendant, a Rolex, and a Mercedes-Benz. Authorities identified Peterson as the mastermind behind the hack, which involved his parents and four others.
The group reportedly laundered the stolen Bitcoin through small transactions over eight months, depositing the BTC into Cash App accounts, withdrawing cash, and transferring the remaining funds into Peterson’s pool account. The group was indicted on charges of grand larceny, money laundering, identity theft, and other crimes. Five suspects were arrested on July 24, while authorities continue to search for the remaining two. If convicted, each individual faces up to 15 years in prison.
Is the Worst of the Crypto Sell-Off Over? According to a recent crypto derivatives report by BlockScholes and Bybit, the worst of the crypto market’s recent sell-off may be behind us. The report noted that while the market remains sensitive to broader economic conditions, the impact of the latest pullback appears to be more muted compared to previous major sell-offs.
Although volatility spiked following the recent market decline, analysts observed that implied volatility did not rise to extreme levels. BTC volatility expectations only increased to levels similar to those seen last July, suggesting that options markets are slow to price in further instability.
The report also highlighted a significant decline in open interest in BTC and ETH perpetual swap contracts, correlating with the sell-off in spot prices. This suggests that traders rushed to close leveraged long positions during the downturn, leading to a spike in trade volumes on August 5. The findings indicate that while the crypto market is still vulnerable to macroeconomic shocks, its resilience may be improving.
Binance Recovers or Freezes Over $73M in Stolen Funds In other news, Binance’s security team has successfully recovered or frozen more than $73 million in user funds from external hacks as of July 31, significantly surpassing the $55 million secured in 2023. Binance worked with other industry players and users to recover lost or misplaced funds and collaborated to freeze and “claw back” ill-gotten gains that made their way to the platform.
Notably, about 80% of the recoveries and freezes were related to external hacks, exploits, and thefts, with the remaining 20% linked to scams occurring outside the Binance platform. Binance Chief Security Officer Jimmy Su emphasized that the increase in recovered and frozen funds does not indicate a rise in criminal activity within the industry. Instead, it reflects Binance’s proactive security measures.
Su highlighted the advantages of blockchain technology in gathering evidence and taking action against scammers, creating a more secure investment environment. He encouraged users to remain cautious and conduct thorough research while acknowledging the role of blockchain in the ongoing fight against scams.
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