Yesterday, the US stock market continued to stage a battle royale drama. The Dow Jones plummeted by thousands of points. Federal Reserve officials came out to calm the market and said that "the economy is not in recession." The crypto market also suffered a bloodbath. There were rumors in the market that Jump Trading was undergoing major liquidation, causing ETH to fluctuate violently and fall by 20%.
( Arthur Hayes: I heard that a certain big shot has collapsed and is selling out all the coins )
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ToggleFed officials say: The economy is not in recession
In an interview with CNBC yesterday, Chicago Fed President Austan Goolsbee downplayed concerns about recession, but said that Fed officials need to pay attention to changes in the economic environment to avoid being too restrictive on interest rates.
The employment data was weaker than expected, but it doesn't look like a recession yet.
He also said that the Fed's current policy is restrictive, but this stance should only be taken when the economy is overheating. If anything deteriorates, the Fed will fix it.
San Francisco Federal Reserve President Marry Daly said on Monday that she believes the Fed will need to make policy adjustments in the next quarter. But how much work needs to be done and when it happens depends largely on the information received.
It seems to me that we have now confirmed that the labor market is slowing, and it is extremely important that we don't let it slow down so much that it goes into a downturn.
Data on Monday showed that as orders and employment conditions improved, U.S. service industry activity rebounded from a four-year low in July. The U.S. ISM non-manufacturing index rose 2.6 points to 51.4 in July, returning to the 50 line between expansion and contraction. superior.
Bloodbath in the crypto, hundreds of thousands of people were forced to liquidate their positions
The crypto market also suffered a bloodbath. There were rumors in the market that Jump Trading was undergoing major liquidation, causing ETH to fluctuate violently and fall by 20%.
( Falling! ETH plummeted to 2,111 this morning, Jump Trading is liquidating Ethereum )
According to the Coinglass heat map, the liquidated amount reached US$1.09 billion within 24 hours, and a total of 270,000 people were forced to close their positions, with Bitcoin US$412 million and Ethereum US$340 million being the bulk.
