The past 24 hours in the crypto market were marked by a correction. Bitcoin (BTC) was trading near the $79,088 level by the morning of August 26, down 2.04% over 24 hours. The asset fluctuated in the range of $77,850–$80,800 during the day, indicating sustained high volatility. Ether (ETH) also declined by 1.79% to $2,465, although local dips to $2,415 were observed overnight.
The top-25 coins showed predominantly negative dynamics. The worst performers were Stellar (XLM) with a drop of 7.62%, Cardano (ADA) at 7.15%, and Zcash (ZEC) at 7.05%. Dogecoin (DOGE) lost 6.38%. The only notable exception was Hyperliquid (HYPE), which rose by 2.23%. In the top-100, the LayerZero (ZRO) token stood out, gaining 9.94%, while Monad (MON) plunged by 10.7%.
Institutional inflows and liquidations
Despite the correction, spot crypto ETFs in the US showed confident capital inflows. Bitcoin funds attracted $314.37 million, Ethereum products $179.8 million, and Solana ETFs $32.25 million. This suggests that institutional investors view the current decline as an opportunity to enter rather than a signal to flee.
At the same time, liquidations in the futures market reached $371.3 million, affecting 84,238 traders. The main blow fell on long positions — $309.78 million versus $61.52 million on shorts. The largest liquidation order was executed on Binance for the BTCUSDT pair at $11.91 million.
Japan and blockchain infrastructure
The Japanese government, the Bank of Japan, and relevant financial authorities announced plans to create blockchain infrastructure for real-time settlements of government bonds, stocks, and other assets. A working group, including the Financial Services Agency and the Ministry of Finance, will begin studying the topic as early as this summer. The network architecture and the order of interaction among market participants are planned to be defined by early 2027. This is the first time Tokyo has set specific timelines for implementing such technology.
Meanwhile, the exchange Kraken faced a so-called "dust attack." From August 17 to 24, nearly 12,000 microtransactions ranging from a few cents to a couple of dollars were sent from a wallet linked to HTX to Kraken addresses. The platform temporarily blocked some accounts, suspecting an attempt to distribute sanctioned funds and test the systems of other platforms. HTX denied involvement, citing a possible address-linking error. Access to accounts has been restored, but funds remain frozen.
Wintermute's actions
Market maker Wintermute reduced its short positions on Hyperliquid from $211.53 million to $80.48 million, i.e., by $131 million. At the same time, the short position on HYPE grew from $5.60 million to $10.20 million, and the unrealized loss on the portfolio amounted to $568,800.
My view: The market decline looks more like a technical correction than the start of a long-term downtrend. ETF inflows and Japan's steps toward legalizing blockchain in public finance are powerful fundamental signals. However, Wintermute's activity and "dust attacks" remind us that the market remains vulnerable to manipulation. Investors should remain cautious and not give in to panic.