Bitcoin, the powerhouse of the cryptocurrency world, has shaken the market with an 8% tumble within the past month, sending waves of criticism toward the prominent crypto exchange Binance. As investors scramble for answers, some are pointing fingers at Binance, accusing it of market manipulation, which has stoked the digital flames of outrage across social media platforms.
Whispers and Accusations
DeFitracer, a noted market analyst, took to X—formerly known as Twitter—to voice his skepticism. He pondered over the paradox of Bitcoin’s decline amidst what many perceive as a positive market environment: burgeoning inflows into crypto exchange-traded funds and the anticipated interest rate cuts from the Federal Reserve in September 2025. Yet, the market continues to stumble. “We’re still dumping—why?” DeFitracer asked, encapsulating the confusion felt by many in the crypto community.
The analyst suggested that Binance is orchestrating the sell-off, allegedly using Wintermute, a third-party market maker, to create a bearish trend. This, he posits, leads retail investors into a panic-driven selling spree, which Binance benefits from through futures liquidations. He recalls a similar event in 2024 when $344 million was liquidated in a single day, hinting that current market tactics might yield similar outcomes. This aligns with recent observations that crypto liquidations hit $900M as Bitcoin sheds Jackson Hole gains.
Broader Market Implications
But the intrigue doesn’t stop at Bitcoin. DeFitracer also highlighted unusual trading activity surrounding Solana (SOL). He noted that Binance appears to be offloading SOL, perhaps to diminish competition with its own Binance Coin (BNB), which boasts a market cap of $117 billion. This has sparked questions about the source of Binance’s Solana holdings, as their proof-of-reserves ostensibly only includes client funds. The potential risk to customer assets has drawn parallels to the infamous collapse of FTX, where client funds were allegedly misused by Alameda Research, leaving a dark mark on the industry.
“This is a terrible look for the exchange,” DeFitracer remarked, emphasizing that user funds should remain untouched by market maneuverings. The echoes of FTX’s downfall ring loudly, reminding the crypto world of the catastrophic consequences of such practices.
A Path Forward?
Despite the chaos, DeFitracer remains cautiously optimistic, detailing a potential three-phase reaction to the current crypto sell-off. The first phase, he suggests, will see panic-induced retail exits. This could be followed by an accumulation phase during the downturn, as savvy investors seize the opportunity. Finally, a sharp rebound might occur, spurred on by the anticipated economic policy changes by the Federal Reserve. This strategy is reminiscent of a whale’s buy-the-Bitcoin-dip strategy, which often follows large liquidations.
The looming Fed rate cuts hold the promise of reversing market sentiment. It’s a scenario reminiscent of 2021 when similar cuts sparked a bull run that sent Bitcoin soaring to unprecedented heights. While uncertainties abound, the upcoming policy shift could act as a catalyst, potentially reigniting investor confidence and driving prices upward.
As Bitcoin currently trades at $108,295—down 12% from the all-time high of $124,000 earlier this month—the community is left grappling with the implications of these allegations and the potential for a market turnaround. The questions linger: Will Binance address these accusations? Can the market rebound with the help of external economic factors? Only time will tell, as the crypto world watches with bated breath.
Source
This article is based on: Bitcoin Price Plunge Sparks Outrage: Binance Targeted For Alleged Market Manipulation
Further Reading
Deepen your understanding with these related articles:
- Bitcoin, Ethereum and Dogecoin Slide as Crypto Liquidations Top $900 Million
- Bitcoin Whales Take Over Binance: Average Deposit Size Jumps To 13.5 BTC
- Solana vs. Bitcoin chart points to explosive SOL price breakout to $300
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
