The recent turbulence in the cryptocurrency landscape, particularly concerning Bitcoin and Ethereum, has raised eyebrows among investors and analysts alike. Renowned crypto analyst Butcher has claimed that both Binance and Wintermute are pivotal players behind the significant downturns in these cryptocurrencies.
Binance and Wintermute Identified as Influential Players in Price Declines
In a recent post on X, Butcher pointed fingers at Binance and Wintermute, remarking on their impact on the falling prices of Bitcoin and Ethereum. Over the last month, the two firms allegedly exchanged a staggering $34.5 billion, leading to investor concerns about market manipulation.
Butcher elaborated on the mechanics of these transactions, suggesting that Binance routinely transfers large sums of Bitcoin and Ethereum to Wintermute just before noticeable market declines. The notable amounts, ranging from $10 million to $100 million, exacerbate the situation by triggering liquidations once Wintermute proceeds to sell.
In his analysis, Butcher recounted the dramatic price crash on October 10, where the market experienced liquidations totaling $19 billion. He reported that Wintermute received around $700 million from Binance, which triggered a rapid fall in prices and extensive selling pressure.
Adding to the controversy, Butcher implied that Wintermute is capitalizing on these downturns by buying back assets at greatly reduced prices. While Binance benefits from transaction fees, Wintermute reportedly profits from trading discrepancies. The pattern was stated to be similar during another crash last week, where combined efforts resulted in $1.16 billion worth of liquidations.
As Bitcoin’s price continues to slip below $100,000 and Ethereum also faces serious drops, Butcher reiterated his strong belief that Binance has orchestrated these downturns, attributing the cause to what he termed “manipulation” by major players rather than typical market selling by retail investors.
Optimism Remains Despite Current Setbacks
Market analyst Raoul Pal remains cautiously optimistic about a potential recovery in the crypto space. He argues that the ongoing U.S. government shutdown may be a significant factor in the current liquidity challenges but anticipates that liquidity constraints will ease, leading to a resurgence of a bull market.
Pal pointed out that as global liquidity increases, it could trigger upward movements in Bitcoin and Ethereum values following the resolution of the shutdown. He estimated that if the shutdown concludes, the treasury could infuse up to $350 billion into the economy, paving the way for more expansive economic activities and quantitative easing.
Moreover, a weakening U.S. dollar amid increased liquidity is forecasted to favor cryptocurrencies, potentially leading to a revitalization of investor interest and market confidence.
