Insights into Crypto Market Dynamics: Allegations and Future Prospects
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Crypto Market Allegations: Binance and Wintermute’s Role in Price Volatility
In recent developments within the cryptocurrency landscape, analyst Butcher has raised concerns about the role of Binance and market maker Wintermute in the recent downturns of Bitcoin and Ethereum prices. He highlighted the events surrounding the October 10 market crash, attributing significant responsibility to these entities.
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Accusations of Manipulative Practices
Through a detailed post on platform X, Butcher accused Binance and Wintermute of orchestrating the recent price drops in Bitcoin and Ethereum. According to his allegations, the two firms engaged in massive trading activities, exchanging $34.5 billion in the past month alone. He claimed that Binance systematically transferred Bitcoin and Ethereum in large amounts ranging from $10 million to $100 million to Wintermute wallets shortly before major sell-offs. Wintermute then purportedly sold off these assets, triggering a series of liquidations in the market.
Butcher pointed out that this strategy was notably employed during the October 10 crash, resulting in a staggering $19 billion liquidation. He explained that Wintermute received $700 million from Binance on that day, followed by aggressive sell walls across trading pairs, ultimately leading to significant long positions being liquidated within a mere 90 minutes. Allegedly, Wintermute subsequently repurchased the assets at a 30% discount, while Binance profited from funding rate fees, and Wintermute from the price spread.
The same tactics, according to Butcher, were applied in a recent crash, where $1.14 billion in Bitcoin was dumped, causing $1.16 billion in liquidations. This has led to a further decline in Bitcoin and Ethereum prices, with BTC falling below $100,000 for the first time since June and ETH plummeting to $3,100, marking a 10% decrease. Butcher emphasized that these manipulations were not the result of retail investor activities, attributing the pressure to Binance’s strategic maneuvers.
Market Recovery Predictions Amidst Current Challenges
Despite the recent turbulence, market analyst Raoul Pal remains optimistic about the cryptocurrency market’s potential for recovery. He anticipates a resurgence in the bull market following the resolution of the U.S. government shutdown, which he identifies as a key factor in the current liquidity constraints.
Potential Catalysts for Market Rebound
Pal highlighted the ongoing global liquidity expansion as a crucial element that could fuel a rebound in Bitcoin and Ethereum prices once the government shutdown is resolved. He predicts that the treasury might inject up to $350 billion into the market in the upcoming months, coinciding with the commencement of quantitative easing. Additionally, a weakening dollar is expected to further bolster the crypto market’s resurgence.
With Bitcoin standing at $101,872 on the daily chart, as observed on Tradingview.com, the expert remains confident in the market’s ability to bounce back and regain its momentum once these external pressures are alleviated.
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