Massive Crypto Liquidations: Did Insiders Predict the Market Crash?
In the past few hours, the crypto market has experienced significant turmoil, resulting in nearly $500 million worth of trades being liquidated. This includes both long and short positions, with $462 million in long positions and $26 million in short positions being wiped out.
Total Liquidation Amount and Market Drop
Over the last 24 hours, the total liquidation amount reached $624.22 million. This massive liquidation event coincided with Bitcoin’s 10% drop from the $45,000 range to $40,750, as well as Ethereum’s drop from $2300 to $2100. Long liquidations have been particularly affected by this market crash.
Matrixport Report and Insider Sales
A primary reason behind this dump is believed to be a report from Matrixport, which discussed the potential rejection of all spot Bitcoin exchange-traded fund (ETF) applications by the US Securities and Exchange Commission (SEC). However, it was discovered that Matrixport had also published an article on the same day titled “Bitcoin Spot ETF approval imminent, BTC to jump to $50,000.” This conflicting information raised suspicions among the community.
In addition to this report, there have been reports of insider selling by Coinbase insiders and Michael Saylor, co-founder of MicroStrategy. These insider sales have contributed to a 16% drop in the price of Coinbase stock since late December.
Other Factors Contributing to Market Turmoil
Furthermore, institutions such as Alameda Research and Celsius Network have been depositing large amounts of Ethereum to centralized exchanges, resulting in a surplus deposit of 132,560 ETH in the past week. Additionally, Bitcoin miners have been selling their BTC over the past 10 days, amounting to over $176 million in sales.
Hot Take: Crypto Market Volatility and Insider Influence
The recent crypto market crash and massive liquidations highlight the inherent volatility of the crypto market. However, suspicions of insider knowledge and conflicting information from institutions like Matrixport raise concerns about potential insider influence on market movements. As the crypto market continues to evolve, transparency and regulatory measures may be necessary to ensure a fair and level playing field for all participants.
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