Binance and Wintermute: A Dark Connection in Crypto? Analyst Weighs In

In a bold assertion, crypto analyst Butcher has put forth the notion that the recent downturns in Bitcoin and Ethereum prices may be linked to the actions of Binance and Wintermute. He pointed to the crypto market collapse on October 10, suggesting that both entities played a significant role in exacerbating the situation.

Accusations Against Binance and Wintermute for Price Declines

In a recent post on X, Butcher claimed that both Binance and Wintermute are at the center of the recent price drops for Bitcoin and Ethereum. He detailed that over the past month, these firms have exchanged a staggering $34.5 billion between each other. Additionally, Butcher revealed that Binance has been sending chunks of BTC and ETH ranging from $10 million to $100 million to Wintermute's wallets just hours before each significant price decrease. This pattern, he contended, allows Wintermute to offload these coins on the market, setting off a chain reaction of liquidations.

Butcher emphasized that this strategy was notably employed during the price crash of Bitcoin and Ethereum on October 10, which resulted in a staggering $19 billion worth of liquidations. On that fateful day, he noted that Wintermute received $700 million from Binance, after which sell walls appeared across every trading pair, leading to the liquidation of $19 billion in long positions within a mere 90 minutes.

Moreover, Butcher alleged that Wintermute capitalized on this situation by repurchasing the same coins at a 30% discount. While Binance benefits from the funding rate fees, Wintermute profits from the spread, creating a mutually beneficial arrangement. He reiterated that a similar tactic was employed in the previous week during another Bitcoin and Ethereum price drop, where they offloaded $1.14 billion in BTC, resulting in $1.16 billion in liquidations.

This week, both Bitcoin and Ethereum have continued their downward trajectory, with BTC dipping below $100,000 for the first time since June. Meanwhile, ETH saw a decline to as low as $3,100, marking a 10% decrease. In another post on X, Butcher reiterated his claims, asserting that Binance was the orchestrator of the crash and declared that there was “total manipulation” from the exchange, absolving retail investors of any blame for the selling pressure.

Market Recovery on the Horizon?

Despite the recent turmoil, market expert Raoul Pal remains optimistic about the future of the crypto market. He believes that a recovery is imminent, particularly when the U.S. government shutdown concludes, as the current shutdown is significantly tightening liquidity.

Pal further explained that global liquidity is on an upward trend, which could potentially trigger a rebound in Bitcoin and Ethereum prices once the shutdown is resolved. He highlighted that the treasury might inject up to $350 billion into the economy in the coming months after the shutdown ends and quantitative easing kicks in. Additionally, he noted that a weakening dollar could provide a favorable environment for the crypto market.