The Bitcoin price has experienced a notable downturn, with the market’s largest cryptocurrency retracting 8% in the monthly time frame. This decline has sparked significant criticism on social media, particularly against the crypto exchange Binance, which some investors accuse of contributing to the current market slump.
These include record inflows into crypto exchange-traded funds (ETFs) and anticipated interest rate cuts by the Federal Reserve (Fed) anticipated for next month. Yet, he points out, “we’re still dumping—why?”
According to DeFitracer, the ongoing sell-offs appear to be orchestrated by Binance, which he claims is using a third party, market maker Wintermute, to execute its trades.
As of press time, the market’s leading cryptocurrency trades at $108,295, meaning a 12% retrace from all-time high (ATH) levels of $124,000 reached earlier in the month.
DeFitracer also highlighted significant activity surrounding Solana (SOL). The analyst indicates that beyond Bitcoin, Binance has also been offloading SOL, potentially driven by an alleged desire to curb competition with its own token, Binance Coin (BNB), which currently has a market cap of $117 billion compared to SOL’s $102 billion.
DeFitracer added that these movements echo the practices of collapsed exchanges like FTX, which similarly utilized client funds through its trading arm Alameda Research:
This is a terrible look for the exchange. User funds should stay safe – not be used for market games. FTX pulled the same move with client funds through Alameda Research. We all know how that ended
While the current market conditions may seem daunting, DeFitracer outlines a potential three-phase market reaction: an initial phase of panic leading to retail exits, followed by accumulation during the downturn, and finally, a sharp rebound.
Featured image from DALL-E, chart from TradingView.com
