While the market was correcting, important events were taking shape behind the scenes: from Japan's institutional interest in blockchain infrastructure to another round of exchanges fighting suspicious activity. I'm breaking down the key moves over the past 24 hours.
Market: Correction and Liquidations
Bitcoin (BTC) was trading near the $79,088 mark by 09:00 Moscow time, down 2.04% over 24 hours. During the day, the price fluctuated in the range of $77,850 – $80,800, but by morning it had settled around $79,000. Ethereum (ETH) also failed to hold its ground: down 1.79%, with an overnight drop to $2,415 and a high of around $2,510. At the time of writing, the asset was worth $2,465.
The correction affected nearly the entire top 25. The worst performers were Stellar (XLM) with a drop of 7.62%, Cardano (ADA) — down 7.15%, and Zcash (ZEC) — down 7.05%. Dogecoin (DOGE) lost 6.38%. The exception was Hyperliquid (HYPE), which gained 2.23%. Among the top 100, LayerZero (ZRO) stood out with a rise of 9.94%, while Monad (MON) plunged 10.7%.
Liquidations intensified the pressure. Over the past day, positions of 84,238 traders were forcibly closed for a total of $371.3 million. The main blow fell on longs — $309.78 million versus $61.52 million on shorts. The largest liquidation order was recorded on Binance for the BTCUSDT pair — $11.91 million.
Institutional Flow: ETFs in the Green
Despite the correction, spot crypto ETFs are showing capital inflows. Bitcoin funds attracted $314.37 million in a day, Ethereum products — $179.8 million, Solana — $32.25 million, and XRP — $23.87 million. Modest but telling inflows were also received by Hyperliquid ($7.51 million), Chainlink ($1.02 million), and Hedera ($863,980). This signals that institutional demand persists even during drawdowns.
Japan: A State Blockchain for Settlements
The Japanese government, the Bank of Japan, and the country's financial regulators are launching a working group to develop next-generation blockchain infrastructure. Its goal is to ensure round-the-clock real-time settlements for government bonds, stocks, and other assets. The study of the topic will begin as early as this summer, and by early 2027, the agencies plan to form the architecture and interaction framework between the government, the central bank, and market participants. This is the first time Japan has set specific timelines for implementing blockchain in the financial system.
Kraken: "Dust Attack" and Account Freezes
The Kraken exchange temporarily froze access for some clients after a series of small transfers from a wallet that analysts linked to HTX. From August 17 to 24, nearly 12,000 micro-transfers ranging from a few cents to a couple of dollars were sent to addresses associated with Kraken. Exchange representatives classified this as a "dust attack," likely aimed at spreading sanctioned funds and testing the systems of other platforms. Access to the affected accounts has been restored, but funds are being held. HTX denied involvement, stating it was reviewing versions about erroneous address linking and actions by malicious actors.
Wintermute: Reducing Shorts on Hyperliquid
Market maker Wintermute sharply reduced its short positions on the Hyperliquid platform from $211.53 million to $80.48 million, i.e., by $131 million. Long positions are meanwhile minimal — just $5.51 million. Interestingly, the short on HYPE grew from $5.60 million to $10.20 million, and the unrealized loss on the portfolio stands at $568,800.
My comment: Wintermute's reduction of shorts amid HYPE's rise looks like a forced measure rather than a strategic reversal. Combined with ETF inflows, this points to a cautious but not bearish stance among institutions. The market is consolidating, and the current correction is more of a purge of overheated longs than a trend reversal.