Who is Really to Blame for the Historic Crypto Crash?
On February 3, 2025, the cryptocurrency market experienced one of its worst days, with over $2.3 billion liquidated in just 24 hours (even $8 to $10 billion, according to ByBit’s CEO). This sudden crash immediately raised suspicions among investors and traders, with some accusing Wintermute and Binance of orchestrating a price collapse to accumulate assets at a low cost.
However, according to Wintermute CEO Evgeny Gaevoy, this crash is primarily linked to macroeconomic turbulence, specifically Donald Trump’s decision to impose new tariffs on China, Canada, and Mexico.
While this explanation may seem rational, many observers point to a accumulation of troubling signals that suggest market manipulation. Are Wintermute and Binance more involved in these drastic fluctuations than they admit?
The Role of Traditional Players in the Market Crash
We don’t “hunt stop losses.” Maybe we should – I’ve always felt like it was a quite risky activity, and we managed to do without it.
According to Gaevoy, recent cryptocurrency crashes are directly related to macroeconomic events rather than deliberate actions by crypto firms. In a post on X, he emphasized the importance of understanding that the digital asset market is now closely connected to global financial dynamics. Trump’s tariffs are claimed to have caused widespread panic, leading to massive sell-offs in the crypto market.
Several analysts share this view, asserting that the uncertainty of a possible global trade war has prompted investors to seek safer assets, amplifying crypto volatility. However, these macroeconomic explanations do not entirely rule out the hypothesis of direct intervention by major industry players.
Wintermute and Binance: Manipulation or Simply Liquidity Management?
While Wintermute denies any hunt for stop losses, some troubling elements question this assertion. On-chain data shows that several major market makers, including Wintermute, have sold off their ETH and other assets during recent market downturns.
In August 2024, the top five market makers sold a total of 130,000 ETH, around $290 million, during a previous market correction. Wintermute parted with 47,000 ETH, while Jump Trading and Flow Traders also liquidated significant amounts.
In addition, posts on X, particularly from the @MartyParty account, suggest that Binance has transferred hundreds of millions of dollars in crypto to Wintermute to exert downward pressure and push traders to capitulate. These accusations, although speculative, have increased community skepticism regarding the true motives of these firms.
Scimitar Capital: The Other Shadowy Actor?
Another key element in this crash is the massive liquidation of altcoins by Scimitar Capital, a crypto trading firm that sold its entire $2 billion portfolio. Some rumors suggest this decision was made to return funds to its partners, triggering a flood of sell orders that intensified the downward spiral.
However, no formal evidence proves that this liquidation directly caused the crash, although some analysts believe its impact may have been amplified by the already fragile state of the market due to geopolitical tensions.
Between Suspicion and Reality: Who Truly Dictates the Market?
Are Wintermute and Binance responsible for the crash? Probably not, as too little evidence is presented to draw a definitive conclusion. Macro-economic tensions, speculation, and automatic liquidations certainly played a major role in the price decline. However, suspicious capital movements between Binance and Wintermute, as well as the actions of certain market makers, have fueled doubts.
The history of cryptocurrencies has proven that major firms are no strangers to manipulation practices. In this context, the question remains open: is this a simple adjustment to market conditions, or an intentional strategy to profit from chaos?
