- On-chain data shows Binance sent millions of dollars to Wintermute in BTC, ETH, and SOL.
- Short-term holders have been selling amid a notable decline in demand from whale investors.
- Binance exchange has been accused of defrauding its retail customers in favor of market makers.
On-chain data has surfaced showing large, strategic asset transfers between Binance and leading market maker Wintermute, preceding a sharp market downturn. The data, highlighted by crypto analyst MartyParty, pointed to collusion between the two giants.
What Does On-Chain Data Show About Binance and Wintermute?
Over the past 24 hours, Binance’s hot wallet was observed depositing significant amounts of Solana (SOL), Bitcoin (BTC), and Ethereum (ETH) to Wintermute-controlled wallets across multiple exchanges, including Kraken, Gate.io, and KuCoin.
The analyst who surfaced the data noted, “I guarantee every asset Binance has on their global casinos are being manipulated using the same rail.”
How Much Money Was Liquidated in the Crypto Crash?
The on-chain activity was followed by a severe market impact. The total crypto market cap dropped 4% to $3.86 trillion, triggering a massive deleveraging event.
According to market data from CoinGlass, $924 million was liquidated from crypto leveraged traders in 24 hours. The vast majority of these liquidations, over $750 million, involved long traders who were betting on price increases, indicating the sell-off caught the market off guard and fueled a potential long squeeze.
Bitcoin holders with an account balance of between 10k and 100k coins reduced their supply by 50k coins in the past two weeks to currently hold 2.16 million. According to on-chain data analysis from CryptoQuant, short-term Bitcoin holders deposited 21,200 BTCs to crypto exchanges in the last 24 hours.
Why Was the Market So Vulnerable to This Drop?
The market was already fragile due to significant selling pressure from large investors. This backdrop of “softer institutional demand,” as noted in a recent QCP report, made the market susceptible to a sharp drop.
On-chain data shows Bitcoin whales reduced their supply by 50,000 BTC in the past two weeks. Concurrently, data from CryptoQuant shows short-term Bitcoin holders deposited 21,200 BTC onto exchanges in the last 24 hours, signaling widespread intent to sell.
Are Traders Leaving Centralized Exchanges After This?
Yes, reports indicate a growing exodus of sophisticated traders from centralized exchanges (CEXes) to decentralized exchanges (DEXes). According to top trader “The White Whale,” fears of market manipulation and forced liquidations on CEXes are pushing futures traders to platforms like Hyperliquid.
The platform’s growth has been explosive; a trend validated by a report that Hyperliquid hit $3.4B in spot volume as Arthur Hayes predicts a 126x HYPE price surge. Data from DeFiLlama confirms Hyperliquid’s TVL has grown to $685 million, though Binance still dominates the market with $185.8 billion in assets.
Specifically, in the past 14 days, Hyperliquid recorded a total traded volume of $2.4 billion.
What Is the Next Key Level for Bitcoin’s Price?
Bitcoin’s price is now retesting the critical $109,000 support level. This level is significant because it previously acted as a strong resistance for six months.
A successful hold here could signal a bullish rebound. The broader market is now looking for a new catalyst, with many traders betting on a potential September Fed rate cut to rejuvenate bullish sentiment, a hope amplified after President Donald Trump fired Fed governor Lisa Cook.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
