drawdown

According to the Daily Economic News, the July quantitative private equity industry experienced a systemic drawdown, with several institutional products seeing a monthly net value decline of over 20%, turning year-to-date returns from positive to negative. Specifically, among the 9 displayed products under Huansquare Quantitative, 8 have recorded negative returns year-to-date, with all monthly declines in July exceeding 20%, and the maximum drawdown reaching 22.15%; among the 14 products displayed by Mingcong Investment, 9 have recorded negative returns year-to-date; in Jiukun Investment's 15 products, 14 still have positive returns year-to-date, but the monthly drawdown is also significant. In contrast, Yanfeng Investment has shown relatively stable performance.Regarding this drawdown, multiple institutions believe that this round of adjustment is more due to emotions and trading structures rather than the end of the AI industry trend. Freshwater Spring Investment pointed out that AI is still rapidly developing in terms of model capability enhancement, cost reduction, and the diffusion of application scenarios. Referencing experiences from the internet era, it is normal for there to be fluctuations during the advancement of technological waves. Institutions believe that AI investment is gradually transitioning from the previous focus on computing power infrastructure in the "first half" to "intelligent equity" in the "second half"—that is, a phase where the cost of intelligent usage continues to decline and application scenarios are accelerated in unlocking, providing opportunities for supply chain companies that can offer cost-effective solutions for leading model companies and large cloud vendors.

According to a report by Jinshi, a report from Goldman Sachs shows that hedge funds focused on the Asian market are facing the largest single-month drawdown on record, due to a widespread sell-off of AI concept stocks, which has erased most of the gains previously concentrated in this sector. As of July 28, these funds have averaged a decline of 18.6% this month. Goldman Sachs pointed out that since the year-to-date return peaked at 40% on July 22, these funds have given back 21 percentage points of their year-to-date gains.

According to monitoring by Hyperinsight, the South Korean stock index fell sharply by 6.7% today, triggering a circuit breaker at one point. As a result, EWY (iShares Korea ETF mapping contract) deployed on the Hyperliquid platform by Trade.xyz also plummeted significantly, currently reported at $122.5, with a 24-hour decline of 4.2%.The largest on-chain EWY long position (0x629) was hit hard, with a temporary drawdown of -83%, holding a position size of $5.5 million, an average price of $128.9, and a liquidation price of $117.7, with a liquidation of 4.1%.

Darkfost posted on platform X that 38% of altcoins are nearing historical lows, worse than the post-FTX period. The overall environment remains unfavorable for risk-taking, with the first affected sector being the cryptocurrency market, especially altcoins. Current market liquidity is still weak, with more flowing into more volatile stocks or commodities.The indicator shows that altcoins are still under pressure, marking the largest drawdown for altcoins in this cycle. In comparison, the indicator was at 35% in April 2025 and 37.8% after the FTX collapse. The chart clearly illustrates the current state of altcoins, with investors remaining cautious and continuing to lose interest in them. However, it is precisely when conditions significantly worsen that opportunities begin to emerge.

The ETF Store President Nate Geraci stated that a 50% drawdown is not uncommon for long-term Bitcoin investors and may not be the last occurrence. He pointed out that despite the significant market downturn, there are no clear signs of panic among spot Bitcoin ETF investors, as the fund flow data indicates that these investors' attitudes remain steady.Geraci believes that, based on recent fund movements, some ETF investors are more inclined to accumulate positions during the pullback phase.

According to monitoring by Hyperinsight, affected by the short-term decline in BTC, the "Strategy Counterparty" whale address (0x94d) has seen its long positions in 7 mainstream cryptocurrencies fall below the average holding price. Subsequently, this address closed all long positions in XRP and SOL, and gradually reduced other positions. As of now, this address has cumulatively closed positions exceeding $80 million in a short period, with total holdings decreasing from $351 million to $270 million.This address began building positions in December last year, with an initial account size of about $20 million, and subsequently increased short positions in mainstream coins like BTC and ETH. Due to its operational direction being completely opposite to the publicly traded company MicroStrategy, which continues to increase its BTC holdings, this address is viewed by the market as a clear "on-chain counterparty."The current main holdings of this address are:BTC 20x (long), quantity: 1,712 coins, holding amount: $160 million, current loss: $260,000, current price: $91,000, liquidation price: $75,000;ETH 20x (long), quantity: 29,000 coins, holding amount: $90 million, current loss: $170,000, current price: $3,117, liquidation price: $2,194.

According to on-chain analyst @ai_9684xtpa, Huang Licheng currently holds a long position in ETH worth 34 million USD, which has retraced over 2 million USD from the unrealized gains when ETH was at a high point on January 7. The current entry price of the position is 3,138.43 USD, with an unrealized loss of 287,000 USD.He also holds a long position in HYPE worth 250,000 USD, with an entry price of 24.4 USD.

ChainCatcher message, according to on-chain analyst @ai_9684xtpa monitoring, Huang Licheng's increased position of 22,298.53 ETH with 25x leverage long position encountered a decline, currently facing an unrealized loss of approximately 4.02 million USD, with an opening price of 4655.3 USD.

ChainCatcher news, according to on-chain analyst @ai_9684 xtpa monitoring, Big Candle Capital (BCC) experienced a single-day asset drawdown of $24.495 million yesterday.Its profit and loss data for the past 7 days shows that the profit peak on August 13 was $20.675 million, which turned into a loss of $3.82 million yesterday, and today rebounded with the market to a profit of $7.33 million. The above changes are speculated to be related to its long position fluctuations, but specific operation records have not been made public.

ChainCatcher news, whale James Wynn posted on social media that his account on HyperLiquid lost 36.19 million dollars in 24 hours, with a maximum drawdown of 55.45%.However, according to overall data released by James Wynn, his account is currently still profitable by 50.07 million dollars, with a maximum drawdown of 84.34%. The cumulative trading volume has reached 7.958 billion dollars.

ChainCatcher message, trader Eugene posted a December trading summary on his social platform stating: "This month, the number of trades reached 47, with a win rate of 72%. The performance this month can be attributed to two main points: position size control and reducing unnecessary mistakes. December encountered the largest two drawdowns to date, with a loss of 3.3 million USD (-7.5%) on DOGE long positions and a loss of 6.5 million USD (-10.2%) on SOL long positions. The main profits this month came from short-term trades in ETH and BTC, as well as successful long positions in some small altcoins, including ENA, PEPE, and other meme coins. In unclear market conditions, it is necessary to reduce the position size for short-term trades in highly volatile assets.In summary for 2024, I have achieved profits in 11 months this year and maintained good stability over different periods. I expect January to be a good trading opportunity for some quality altcoins, and I have already positioned myself in ETH and its related beta coins."

ChainCatcher message, trader Eugene posted on social media, "Making money in the crypto market is one thing, but holding onto profits is another. When planning your exit strategy for this cycle, you should focus on minimizing the drawdown from historical highs after the market turns. For those who say they can consistently profit in both bull and bear markets, I can only wish you good luck ------ because that means you have to become one of the top 0.01% of traders in the world. Here are the indicators I use to measure investment performance ------ the percentage drawdown from the new net worth high:0-20%: Your defense is perfectly in place, but you may have overdone it at the cost of sacrificing too much upside potential;20-30%: You performed well. You were able to see the signals of market turn and exit in time, with minimal losses;30-50%: The performance is okay. While not the best, ideally you should have already made a decent profit;50-75%: You stayed too long and failed to identify the key turning point at the end of the cycle;75%: There is a serious problem at some point, and you need to comprehensively assess whether you are fit to continue trading.Interestingly, you will never know the true extent of the drawdown before the next cycle begins. But in any case, it's worth planning ahead."

ChainCatcher message, Glassnode released a report stating that Bitcoin has recorded the deepest decline of the current cycle, with trading prices more than 26% lower than ATH. Nevertheless, compared to past cycles, the magnitude of the pullback remains relatively shallow in historical terms.This price contraction has caused a significant amount of short-term holder supply to fall into unrealized losses, with over 2.8 million BTC now underwater based on their on-chain acquisition prices. While the financial pressure on short-term holders has increased, the scale of locked-in losses remains relatively moderate compared to the market size.

ChainCatcher message, according to on-chain analyst @ai_9684xtpa's monitoring, 8 hours ago, a whale that built a position in UNI a year ago is suspected to have sold 715,000 UNI, worth 5.17 million dollars, with a profit down 5.83 million dollars from the peak.On February 7, 2023, when UNI was transferred out of the exchange, the price was 6.76 dollars. This whale went from deep in the red to making a significant profit, ultimately selling almost back at the original point.