Key Points
- Binance and Wintermute face allegations of market manipulation amidst two major crypto market crashes in 2025.
- The global crypto market cap has seen a 3.20% surge with both Bitcoin and Ethereum recording gains.
2025 has been a tumultuous year for the cryptocurrency market with two significant crashes.
The first was triggered by the launch of DeepSeek and the second by an escalating tariff war.
Understanding The Market Upheaval
The crypto market experienced liquidations amounting to $2.24 billion within a 24-hour span on February 3rd.
This happened following an executive order by U.S. President Donald Trump that imposed import tariffs on China, Canada, and Mexico.
Wintermute’s founder Evgeny Gaevoy has refuted claims of market manipulation.
He attributes the liquidation of cryptocurrency to traditional finance (TradFi) events, not actions within the industry.
Allegations of Market Manipulation
Crypto investigator Marty Party has suggested that Binance is supplying substantial funds to Wintermute.
According to Party, this is done to trigger forced sell-offs and influence trader behavior, creating opportunities for large players to buy at lower prices.
Gaevoy dismissed these concerns, assuring that this situation does not resemble past collapses like FTX or Terra-Luna.
He also stated that Wintermute operates across Centralized Finance (CeFi), Decentralized Finance (DeFi), and Over-the-Counter (OTC) markets, maintaining a highly diversified approach.
Wintermute remains a leading counterparty for Binance, with trading volumes reaching $34.54 billion over the past month.
Of this, Wintermute accounted for $14.94 billion, while Binance saw $19.24 billion.
Market Makers and Their Influence
Market makers are crucial for maintaining liquidity, but their actions can intensify selling pressure during downturns.
In August 2024, five major market makers collectively offloaded 130,000 Ethereum (ETH)—worth approximately $290 million—as ETH’s price dropped from $3,000 to below $2,200.
Despite market makers not being the primary cause of recent crashes, their large-scale liquidations raise concerns about their influence on price movements during volatile market conditions.
Current Market Trend
According to the latest data from CoinMarketCap, the global crypto market cap has bounced back to $3.21 trillion.
This represents a sharp 3.20% increase in just 24 hours.
Notably, Bitcoin (BTC) and Ethereum (ETH) have also recorded gains of 3.58% and 3.96%, respectively, over the same period.
