Evgeny Gaevoy, founder of crypto market maker Wintermute, has attributed recent abnormal fluctuations in Bitcoin and Ethereum spot prices to a possible liquidation of a market-making bot. On February 8, the 1-minute charts for BTC and ETH showed significant volatility, with price swings exceeding 1% to 3% within minutes. Gaevoy suggested that the bot's liquidation could have resulted in losses amounting to tens of millions of dollars.
Gaevoy dismissed rumors of a major institutional liquidation, noting that such claims lack confirmation from reliable sources. He emphasized that the current market environment, characterized by tighter credit and reduced leverage, makes widespread liquidations unlikely. Unlike past events involving Three Arrows Capital and FTX, there are no clear signs or institutional distress indicating a major liquidation event.
Wintermute Founder Attributes BTC, ETH Volatility to Bot Liquidation
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
