Key Highlights

• Shares of JEM closed 267.59% higher during Tuesday’s regular session at $3.97, followed by an additional 154.41% gain after-hours to $10.10
• The explosive move followed news that Robin Hoksnes Karlsen was appointed as executive director, revealed before markets opened
• Volume exploded to 122.24 million shares — approximately 130 times the typical daily average of 940,600
• Directors greenlit exploration of an AI-powered blockchain supply chain system with a preliminary budget of $10–12 million across three years
• No funds have been allocated yet; any cryptocurrency payment trials require regulatory clearance in Hong Kong, the EU and compliance with FATF standards

707 Cayman Holdings (JEM) delivered one of Tuesday’s most dramatic market performances. Shares finished regular trading up 267.59% at $3.97, before climbing an additional 154.41% in extended hours to $10.10.

707 Cayman Holdings Limited Ordinary Shares, JEM

The dramatic rally was sparked by news that Robin Hoksnes Karlsen had been named executive director. The announcement arrived ahead of market open.

Karlsen is the founder of AMIHAN Innovations Ltd., a Web3 and technology firm, and brings over ten years of expertise spanning real estate investing, capital structuring and institutional Real World Asset (RWA) tokenization within decentralized finance ecosystems. His educational credentials include a master’s degree from the University of Hong Kong and an undergraduate degree from University College London.

Trading activity underscored the intensity of investor interest. The session saw 122.24 million units change hands — roughly 130 times JEM’s standard daily volume of 940,600.

With a market capitalization around $7.15 million, the company remains firmly within small-cap boundaries. JEM’s 52-week trading range spans $1.02 to $135, while its RSI currently registers at 67.99 after the dramatic price movement.

Company Unveils AI and Blockchain Supply Chain Strategy

Also on July 1, the board revealed approval to investigate a cutting-edge digital infrastructure merging AI capabilities, blockchain-based traceability and a cryptocurrency payment pilot designed to digitalize its worldwide apparel supply network.

The initiative responds to growing demand from European and North American customers for enhanced supply chain visibility, accelerated restocking cycles and authenticated ESG documentation.

Leadership presented a preliminary three-year funding framework of $10 million to $12 million for staged implementation. The roadmap encompasses AI-enhanced supply chain efficiency, AI design tools, blockchain-powered origin verification and a crypto transaction pilot program.

The board emphasized that no capital commitments have been finalized. The schedule and extent of any cryptocurrency payment operations hinge on securing regulatory permissions in Hong Kong, the EU and meeting FATF compliance requirements.

Karlsen’s expertise in blockchain tokenization and real estate finance is being highlighted as strategically aligned with this expansion trajectory.

Short Position Data and Historical Performance

Some broader perspective deserves attention here. While Tuesday brought explosive gains, JEM remains down 96.17% across the trailing twelve months. The six-month performance shows a gain of 12.15%.

Short interest currently represents 36.2% of available float. Such elevated short positioning can magnify price swings in either direction when traders rush to close positions.

Technical analysis signals from TipRanks currently indicate a sell rating for the stock.

JEM’s market capitalization stays modest at $5.6–7.15 million based on different measuring points. This means even moderate purchase activity can generate disproportionate price reactions.

The company’s typical daily trading activity before Tuesday stood at merely 940,600 units, contrasting sharply with the 122.24 million shares that traded during the session.

Ethereum has remained pinned near the $1,500 support zone after quarter-end selling, whale distribution, and weak institutional flows kept the second-largest cryptocurrency under pressure despite continued corporate treasury accumulation.

According to data from crypto.news, Ethereum (ETH) traded around $1,580 at the time of writing, down roughly 5.3% over the past seven days and about 25% for the quarter. The decline completed Ethereum’s first-ever streak of three consecutive quarterly losses.

Selling pressure also intensified after the Ethereum Foundation announced a restructuring on June 23 that included a 20% workforce reduction and a 40% budget cut, raising fresh concerns about development spending while large holders continued reducing exposure.

Corporate buyers, however, have continued to accumulate into the weakness. SharpLink disclosed another purchase of 10,000 ETH at an average price of $1,611, spending about $16.1 million to expand its treasury. Separately, Bitmine added 27,084 ETH during the past week, lifting its holdings above 5.7 million ETH. Those purchases have so far failed to offset persistent selling from whales and institutional investors.

Bitmine, however, framed the quarter-end weakness as partly technical rather than purely fundamental. In a June 30 post on X, the company said “window dressing is taking place,” adding that institutions often sell underperforming assets toward the end of a quarter. Bitmine noted that Bitcoin was down 13% and Ethereum was down 25% for the quarter, saying crypto was “being sold” into the reporting period.

On-chain activity has remained mixed. According to Ali Martinez, Ethereum whales sold roughly 550,000 ETH over the past week, adding substantial supply to the market. Lookonchain separately reported that one whale exited a 2,468 ETH position after holding it for more than five months, realizing a loss of about $4.33 million after selling near $1,572.

FG Nexus has also struggled with its Ethereum treasury strategy. According to Lookonchain, the company has realized about $86.6 million in losses after buying ETH near the 2025 highs and later selling at much lower prices.

Meanwhile, institutional demand has yet to recover. Spot Ether ETFs have recorded approximately $274 million in cumulative net outflows across consecutive sessions without posting a single day of positive inflows. At the same time, capital has continued flowing into U.S. artificial intelligence stocks and the recently launched SpaceX IPO, leaving fewer buyers available to absorb Ethereum’s selling pressure.

Technical structure leaves Ethereum trapped between $1,500 and $1,650

Ethereum’s daily chart continues to trade below a descending trendline that has capped every recovery attempt since May. The asset also remains below the daily Supertrend resistance near $1,644, while the 78.6% Fibonacci retracement around $1,695 forms the next major resistance level should buyers regain control.

Momentum indicators have yet to confirm a reversal. The daily RSI remains near 36, keeping Ethereum in bearish territory despite stabilizing above recent lows. MACD has begun flattening after weeks of decline but has not produced a decisive bullish crossover. On the 4-hour chart, Chaikin Money Flow has climbed back above zero, suggesting buyers have started returning, although the recovery remains limited while price stays below key resistance.

Derivatives positioning also presents a mixed picture. CoinGlass liquidation data shows the largest short liquidation cluster sitting around $1,590-$1,600, while a much larger concentration of long liquidations has built between roughly $1,530 and $1,545. A break above the upper cluster could trigger a short squeeze toward the $1,640-$1,700 region, whereas losing the lower liquidity pocket could accelerate selling into the psychological $1,500 support.

Commenting on the market structure, crypto analyst Ted Pillows wrote: 

“ETH is holding better than BTC now… Until Ethereum reclaims the $1,700 level, the chances of a new low will go up.”

His view aligns with the current technical picture, where reclaiming $1,700 would invalidate the series of lower highs that has controlled price action for nearly two months.

Loss of $1,500 support could expose another leg lower

The bearish case strengthens if Ethereum fails to defend the $1,500-$1,510 support band, which also aligns with the recent swing low on the daily chart. A breakdown below that region would invalidate the current consolidation and expose the next downside targets near $1,400 before attention shifts toward the $1,200 area discussed by several market participants.

Macro conditions continue to add uncertainty. Sticky U.S. inflation, expectations for higher interest rates, geopolitical tensions in the Middle East, and weaker decentralized finance activity have reduced risk appetite across digital assets.

Unless ETF flows stabilize, whale selling eases, and Ethereum reclaims resistance above $1,640 and eventually $1,700, quarter-end weakness may continue to weigh on price even as corporate treasuries keep accumulating ETH.

Cryptocurrency markets headed into the third quarter of 2026 with a notable reset in leverage, but also with noticeably thinner liquidity. A wave of liquidations in Q2 cleared out a large portion of leveraged positioning, even as key demand drivers weakened into the same period, according to Talos data cited in a market update.

That combination—less leverage clearing the system but less depth to cushion future selling—sets up a market that may be less prone to immediate forced cascades, while still capable of sharp price swings when large orders hit thin order books.

Key takeaways

• Q2 liquidation totals were substantial: Talos reports $8.35 billion in combined Bitcoin and Ether long liquidations.
• Derivatives leverage fell: Bitcoin open interest dropped to $33.5 billion (down 32% from its Q2 peak) and Ether open interest fell to $16.2 billion (down 40%).
• Liquidity thinned: Bitcoin order-book depth slipped to roughly $35–$40 million by late June from around $70 million in early May.
• Demand pressures aligned with deleveraging: Talos links the liquidation wave to spot Bitcoin ETF outflows, reduced buying by Strategy, and contraction in stablecoin supply.

Deleveraging cleared leverage, but market depth fell

Talos’ update points to Q2 as a period where speculative positions were largely unwound. Long liquidations for Bitcoin and Ether totaled $8.35 billion, a move that Talos describes as contributing to a more stable environment entering Q3.

However, stability after a liquidation event does not automatically translate into resilience. Talos warns that reduced order-book depth—meaning there is less buy and sell liquidity near current prices—can leave the market less able to absorb renewed selling pressure. In practical terms, fewer resting orders can raise the odds of abrupt moves when market participants try to exit at once.

By midweek, Bitcoin was trading at $58,656, after hitting an intraday low of $57,742. That level was its lowest since Sept. 17, 2024, underscoring how the post-liquidation reset did not eliminate downside pressure.

Open interest drops: a gauge of how much leverage remains

One of the clearest signals that leverage was reduced in Q2 is open interest, which tracks the notional value of outstanding derivatives positions. Talos reports that Bitcoin open interest fell to $33.5 billion, down 32% from the Q2 peak. For Ether, open interest declined to $16.2 billion, a 40% drop.

Lower open interest generally means fewer leveraged bets remain outstanding. That can reduce the likelihood of rapid liquidation spirals if prices move sharply. Still, the other side of Talos’ caution is liquidity: if trading activity remains weak and depth stays shallow, markets can still experience large price swings even without the same level of leveraged positioning.

Stablecoins, order books, and spot volumes: the liquidity picture

Alongside the deleveraging, Talos highlights a market that is trading with less capacity to absorb shocks. Bitcoin’s 2% order-book depth—the aggregate value of orders within 2% of the market price—fell to about $35–$40 million by late June from approximately $70 million in early May.

Spot activity also weakened. Talos reports spot exchange volume declined 28% quarter-over-quarter to $2.32 trillion. When both order-book depth and spot volumes contract, traders often face a market that clears faster but with less friction—meaning fewer participants are absorbing size, and price can move more quickly on incremental flow.

Demand softening: ETF outflows and Strategy’s slower buying

Talos ties the deleveraging period to weakening spot demand during Q2. The report points to spot Bitcoin ETF outflows and reduced Bitcoin purchases by Strategy, alongside a contraction in stablecoin supply.

ETF flows illustrate that demand did not hold steady. Cointelegraph previously reported that US spot Bitcoin ETFs logged $696.3 million in net outflows on June 25. Earlier coverage also noted that June saw roughly $4.5 billion in outflows, which pushed year-to-date outflows to $5.5 billion (as reported by Cointelegraph in links cited above).

Strategy’s buying pace also slowed materially over the same quarter window. Company disclosures cited in the original coverage indicate Strategy purchased about 3,600 BTC in June—down from roughly 25,000 BTC in May and more than 50,000 BTC in April. The same set of disclosures indicated a net sale of 32 BTC earlier in June and a June ending treasury of 847,363 BTC, bought at an average price of $64,103 per coin (details referenced in the cited Cointelegraph links).

The significance for investors and traders is straightforward: when spot demand is weaker, the market has less “natural” buyer absorption during selloffs. That doesn’t guarantee a downtrend, but it can change how quickly prices react to negative catalysts—especially when liquidity is already thinning.

What to watch next: depth, flows, and leverage metrics

The key question heading deeper into Q3 is whether liquidity and demand stabilize at current levels. Talos’ data suggests the market may be less leveraged but also less buffered, so traders should monitor order-book depth, spot volumes, ETF net flows, and open interest for signs of either renewed fragility—or a return of steadier participation.

The EUR/CHF pair is trading within a clear divergence between the two central banks. The ECB raised rates by 25 basis points on 11 June, lifting the deposit rate to 2.40% — its first hike since 2023 — after eurozone inflation climbed to 3.2% in May on the back of the Middle East-driven energy shock. More recent signals suggest easing pressure, though, as falling oil prices following the peace agreement have reduced expectations of a further hike in July.

On the Swiss side, the SNB left rates unchanged at 0.00% on 18 June, while signalling greater readiness to intervene in the currency market to contain excessive franc strength. Despite the ECB’s rate advantage, the franc remains structurally firm below parity, underpinned by its so-called safe-haven status and the still-fragile geopolitical backdrop. A renewed bout of risk-off sentiment could see the franc regain ground even against a higher-yielding euro.

Technical Analysis of EUR/CHF

After bottoming out in March 2026, EUR/CHF has been building a medium-term bullish structure. Price is now testing a pivotal zone, the former support around 0.9240–0.9260, which has since flipped into resistance.

Bullish scenario
The 100-period EMA has been underpinning price for several sessions, while two ascending trendlines reinforce the recent breakout from the descending channel. A confirmed break above the 0.9240–0.9260 zone could open the way toward the next key level near 0.9350, validating a bullish structural shift for the pair.

Bearish scenario
A rejection from the current zone, with price slipping back inside the descending channel it recently broke out of, could reignite stronger bearish pressure and drag the pair back toward the 0.9100 support area.

With both the fundamental and technical picture converging at this decisive juncture, and the next central bank moves still uncertain, will EUR/CHF finally manage to break through this heavily contested zone?

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Cryptocurrency markets entered the third quarter of 2026 with less leverage but thinner liquidity after a wave of liquidations cleared speculative positions while major sources of demand weakened during the second quarter.  

According to a market update from institutional data provider Talos, Bitcoin (BTC) and Ether (ETH) long liquidations totaled $8.35 billion in Q2. The data provider pointed out that the deleveraging coincided with spot Bitcoin exchange-traded fund (ETF) outflows, reduced Bitcoin buying by Strategy and a contraction in stablecoin supply. 

While the reset left the market more stable heading into Q3, Talos said reduced order-book depth weakened its ability to absorb renewed selling pressure. This means the market could be less vulnerable to a chain reaction of forced selling, but prices may still swing sharply because there’s less trading activity to absorb large orders. 

Cross-asset performance chart. Source: Talos

At last look on Wednesday, Bitcoin was trading hands at $58.656, after trading earlier in the day to $57,742, its lowest price since Sept. 17, 2024.

Talos said the liquidation wave reduced the amount of leveraged money in the market. Bitcoin open interest, which measures the value of outstanding derivatives contracts, fell to $33.5 billion, down 32% from its Q2 peak, while Ether open interest dropped to $16.2 billion, a 40% decline, according to the data provider. 

Related: Swan’s Cory Klippsten sees record Bitcoin holder supply revealing early bottom

To be sure, the market became less liquid: Bitcoin’s 2% order-book depth, the value of buy and sell orders close to its market price, fell to between $35 and $40 million by late June from about $70 million in early May. Spot exchange volume also declined 28% quarter-over-quarter to $2.32 trillion, according to Talos. 

ETF outflows and Strategy slowdown weigh on demand

Weakening demand was evident before the end of Q2. US spot Bitcoin ETFs recorded $696.3 million in net outflows in a single day on June 25. In total, June recorded about $4.5 billion in outflows, pushing year-to-date totals to $5.5 billion. 

Strategy also purchased roughly 3,600 BTC in June, down from about 25,000 BTC in May and more than 50,000 BTC in April, according to company disclosures. The company also recorded a net sale of 32 BTC earlier in June and ended the month with 847,363 Bitcoin in its treasury, purchased at an average price of $64,103 apiece.

Magazine: Japanese pension fund tips 1% in crypto, G7 urges action on NK hackers: Asia Express