Cryptocurrencies suffered a dramatic downturn as a wave of risk aversion swept through global financial markets. Bitcoin plummeted more than 14%, marking its steepest decline since the collapse of FTX while Ethereum, the second-largest cryptocurrency, endured an even more severe drop, losing over 20% of its value in a day.

The cryptocurrency trading arm of Jump Trading, Jump Crypto, has moved millions of dollars worth of various cryptocurrencies to exchanges, sparking speculation of a potential upcoming sell-off.

Wall Street giant Morgan Stanley is set to become the first major Wall Street bank to actively offer spot Bitcoin exchange-traded funds to clients, as it has told its army of 15,000 financial advisors they’re authorized to pitch shares in BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund to eligible investors.

Top stories in the Crypto Roundup today:

• Bitcoin Sees Worst Decline Since FTX Collapse
• Jump Crypto Moves Hundreds of Millions Dollars Worth of Crypto to Exchanges
• Morgan Stanley to Become First Wall Street Bank Pitching Bitcoin ETFs to Clients

Bitcoin Sees Worst Decline Since FTX Collapse

Cryptocurrencies suffered a dramatic downturn as a wave of risk aversion swept through global financial markets. Bitcoin plummeted more than 14%, marking its steepest decline since the collapse of FTX while Ethereum, the second-largest cryptocurrency, endured an even more severe drop, losing over 20% of its value in a day.

The broader cryptocurrency market was engulfed in a sea of red as investors grappled with a confluence of economic and geopolitical challenges. A deepening global stock market sell-off, fueled by concerns over economic growth and the potential overvaluation of artificial intelligence.

Rising tensions in the Middle East further exacerbated investor anxiety as Iran is expected to soon attack Israel in response to the killing of Hamas’s leader Ismail Haniyeh in Tehran. Bitcoin is at the time of writing trading near $53,000, while ETH is at $2,340.

Spot Bitcoin exchange-traded funds experienced their largest outflows in three months, raising questions about whether these products will attract bargain hunters or face continued selling pressure.

Analysts pointed to several factors driving the crypto sell-off, including the unwinding of the yen carry trade as the Bank of Japan raised interest rates, which increased the value of the yen and affected those borrowing it to gain yield overseas.

On top of that, economic data in the United States has started pointing to a potential recession after worst-than-unexpected unemployment data triggered what’s known as the Sahm rule, an indicator that measures the three-month moving average of the U.S. unemployment rate against its previous 12-month low.

The sell-off in equities markets has been severe to the point Japan’s Nikkei 225 index saw its worst two-day performance ever, losing nearly 20% of its value.

Jump Crypto Moves Hundreds of Millions Dollars Worth of Crypto to Exchanges

The cryptocurrency trading arm of Jump Trading, Jump Crypto, has moved hundreds of millions of dollars worth of various cryptocurrencies to exchanges, sparking speculation of a potential upcoming sell-off.

According to data from Arkham Intelligence, the funds Jump Crypto has moved include 120,000 staked Ether tokens worth over $300 million, which were moved just a day after spot Ether exchange-traded funds (ETFs) started trading in the United States.

The funds, according to the data, were sent to various major cryptocurrency exchanges including Bybit, Gate.io, Binance, OKX, and Coinbase. Jump Crypto still holds at least $125.8 million in staked Ether. The firm also moved USDC, USDT, Uniswap’s UNI, and Shiba Inu to crypto exchanges.

The large scale transactions over the weekend drew criticism from the community, with blockchain sleuth “Wazz” suggesting that the move was meant to “inflict the maximum amount of pain,” as it came during an illiquid period – the weekend – and after the “worst stock market day in years.”

Morgan Stanley to Become First Wall Street Bank Pitching Bitcoin ETFs to Clients

Wall Street giant Morgan Stanley is set to become the first major Wall Street bank to actively offer spot Bitcoin exchange-traded funds to clients, as it has told its army of 15,000 financial advisors they’re authorized to pitch shares in BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund to eligible investors.

The move marks a significant milestone for Bitcoin, which has endured extreme market volatility, the collapse of FTX and other firms in the space, and the skepticism of financial titans like Jamie Dimon and Warren Buffett.

Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo have thus far restricted spot Bitcoin ETF offerings from being pitched to clients, offering the products only to clients actively seeking them.

Morgan Stanley’s move is in response to client demand and comes with a cautious approach, as only clients with a net worth of at least $1.5 million and an aggressive risk tolerance looking for speculative investments are suitable to being pitched spot bitcoin ETFs.

The bank will reportedly monitor clients’ cryptocurrency investments to ensure they don’t have excessive exposure to the space.

State of the Crypto by Top Tier Exchange Volume

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