Cryptocurrency liquidation of $525 million! BTC death line at 110,000: breaking this level could trigger a "shitcoin massacre"?
Three consecutive black swan events
Trump's tariff bomb: on July 31, adding 10%~50% tariffs to over 60 countries (35% for Canada), triggering a global sell-off of risk assets;
Non-farm employment collapse: only 73,000 new jobs added in July, below the expected 104,000, with the previous two months revised down by 258,000, leading to a surge in recession fears;
Political outrage + geopolitical conflict: Trump fires the head of the Bureau of Labor Statistics and sends a nuclear submarine close to Russia.
In just 24 hours, three major bearish factors have combined, triggering a mass liquidation in the crypto market.
Liquidation structure: ETH becomes a meat grinder
Long positions account for 89%, with 160,000 retail investors suffering heavy losses;
ETH liquidations at $270 million > BTC's $165 million, primarily due to a previous 49% increase and concentrated leverage at 7.
Medium-term impact: High-pressure period in August
Capital risk aversion: Bitcoin ETF sees net outflows, gold surges to $3,362;
Historical curse: Over the past 12 years, the probability of BTC falling in August/September is 67%;
Altcoins at high risk: If BTC fails to hold the 110,000 level, it may lead to a bloodbath.
Whale movements split
Profit-taking faction: Arthur Hayes sells 2,373 ETH, Galaxy Digital reduces holdings by 80,000 BTC;
Bottom-fishing faction: ARK buys Coinbase stock, whales scoop up 34,900 ETH.
Consensus: Stay away from altcoins, focus on BTC/ETH.
Dragon operations
Leverage reduced to below 3 times with hard stop-loss;
Keep a close eye on the tariff effective date of August 7 and the Fed's rate cut in September;
Only hoard BTC/ETH spot.
Dragon summary
The $500 million liquidation is the result of a "policy black swan + leverage bubble" double whammy, with the market entering a high-pressure period in the short term. The medium to long-term institutional allocation demand remains unchanged, and the sharp decline is actually a healthy deleveraging. Uninstall contract apps and hoard spot in anticipation of a rate cut in September.
Opportunities and risks coexist in the crypto circle, stay vigilant, and seizing the right moment is key. The dragon has also discovered a short-term skyrocketing project with huge potential for doubling! Want to keep up? Follow the dragon for free sharing! Keep an eye on the dragon trend
