BlockBeats News, February 9th. Evgeny Gaevoy, founder of the crypto market maker Wintermute, analyzed the abnormal price movement in the 1-minute Bitcoin and ETH spot chart in the early morning of February 8th. He stated that it was likely caused by a market maker bot’s liquidation event, resulting in a loss of potentially tens of millions of dollars. The unusual fluctuation was due to the bot’s losses rather than any malicious activity by the market maker, and apparently Wintermute was not involved.
Evgeny Gaevoy further commented that he is skeptical of rumors about “large institutions being liquidated” in the market, and even if it did happen, it would not have a significant long-term impact. Compared to previous incidents like the collapse involving Three Arrows Capital and FTX, where news of the liquidation spread rapidly and there were clear signs such as institutions seeking help, the current market rumors mostly originate from anonymous accounts and have not been confirmed by reliable sources. The leverage in this cycle mainly comes from perpetual contracts, and trading platforms no longer engage in risky investments with user funds in illiquid assets or issue special credits. Credit tightening has led to institutional credit scales of less than $2 billion, limiting the impact and making it difficult to trigger a chain liquidation event as in 2022.
Earlier reports mentioned that in the early hours of February 8th, there was an abnormal price fluctuation in the 1-minute Bitcoin and ETH spot chart, with single-minute swings of over 1% and even 3% from 00:05 to 00:17.
