Analysis: Yesterday's BTC and ETH spot minute charts experienced abnormal volatility, possibly due to a certain liquidation of a market-making bot

BlockBeats News, February 9, Evgeny Gaevoy, founder of the crypto market maker Wintermute, analyzed the abnormal price movements of Bitcoin and ETH spot prices on the 1-minute chart in the early hours of February 8. He stated that it was likely caused by a certain market maker bot's liquidation event, resulting in a loss of up to tens of millions of dollars. The unusual fluctuation was due to losses from the bot, not malicious behavior from the market maker, and clearly, Wintermute was not involved.

Evgeny Gaevoy further commented that he was skeptical of rumors about "large institutions being liquidated" in the market, and even if it did happen, it would not have a medium- to long-term impact. Compared to past events like the Three Arrows Capital and FTX collapse, where news of liquidations spread quickly and there were clear signs of institutions seeking help, the current market rumors mostly come from anonymous accounts and have not been confirmed by reliable sources. Leverage in this cycle mainly comes from perpetual contracts, and exchanges no longer engage in risky investments using user funds or provide special credit as they did in the past. Credit tightening has led to institutional credit sizes being less than $2 billion, limiting the impact and making it difficult to trigger a chain reaction liquidation like in 2022.

Earlier reports showed abnormal price movements on the Bitcoin and ETH spot 1-minute chart in the early hours of February 8, with continuous single-minute fluctuations of over 1% and even 3% from 00:05 to 00:17.