[Wintermute: Marginal Selling Pressure in Crypto Nears Exhaustion, But Heavy Positions for Strong Rebound Are Still Ill-Advised] BlockBeats News, August 4th, Wintermute stated in a post that the Federal Reserve kept the federal funds rate unchanged last week, stabilizing U.S. equities, partly due to the completion of large-scale forced sell-offs. Leveraged AI fund Situational Awareness publicly sold its holdings at a discount to Citadel. After AI infrastructure longs suffered heavy losses and software shorts were squeezed, the sell-off in chip stocks initially intensified but later stabilized as positions transitioned, allowing the market to absorb the hawkish pause. The crypto market showed relative resilience, with Strategy once again selling Bitcoin preferred shares to pay dividends. A Coldcard firmware vulnerability led to the theft of large Bitcoin holdings from users, and altcoins continued to be liquidated. The sequence of U.S. equities releasing pressure first, followed by crypto, aligns with previous expectations. Major cryptocurrencies retreated by less than 4% despite multiple shocks, indicating that marginal selling pressure is nearing exhaustion. At present, heavy positions aimed at capturing a strong rebound are still ill-advised, but holdings and options data suggest some may be caught off guard by a short-term technical rally. This week, attention will focus on ISM services and non-farm payroll data, with the Jackson Hole meeting serving as the last clear signal window before the September FOMC meeting. Institutional OTC spot trading now accounts for a record 72%, with liquidity further concentrating on mainstream assets. [Original Link]