The 18% drop in the overall crypto market in the past 24 hours has caused major panic, leading to large liquidations in leveraged positions. With Ethereum’s price falling over 20%, rumors spread that Tron founder Justin Sun lost over $152 million in liquidations. However, Justin Sun denied these rumors and clarified the situation. The recent market sell-off during Asian trading hours on Monday resulted in over $1 billion in total crypto market liquidations, with many traders in leveraged long positions suffering losses, and rumors suggesting Justin Sun was among them.
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The Tron founder has dismissed the rumors, stating that he and his team rarely use leverage trading strategies. According to Justin Sun, leverage trades don’t benefit the crypto market. Instead, he and his team concentrate on activities that support the crypto industry and entrepreneurs. This includes working on blockchain projects, staking, running nodes, and helping project teams with liquidity.
The crypto market is experiencing high volatility, with Bitcoin’s price falling to $50,000 before recovering to $52,800 at press time. Daily trading volumes have surged by 161% to $71.8 billion.
Bitcoin critic Peter Schiff believes the situation might worsen when US market trading starts on Monday. US futures are currently down significantly, and Schiff predicts a major liquidation in the Bitcoin ETF market with a potential 30% drop. Concerns about a US recession and a hard landing are growing, though some reports suggest the Fed might act before September with a 50 basis point rate cut.
SEE ALSO: Bitcoin Leads Crypto Outflow With $400M Lost Amid Recession Fears
