Du Jun warns of potential liquidation risks in the crypto market as BTC ETF trading volume reaches 25% of spot trades, amidst a significant decline in centralized exchange trading.
Du Jun notes a strong influx of funds into U.S. stocks influenced by AI trends, while BTC ETF trading volume constitutes 25% of spot trades. He warns that the introduction of additional ETFs could lead to liquidation and reallocation within the crypto market. Furthermore, centralized exchanges have experienced a 40% decline in trading volume over the last six months, and on-chain Total Value Locked (TVL) has remained unchanged. Currently, stablecoins are primarily utilized for arbitrage and payments, with increased issuance resulting in greater extraction.