Bitcoin News Today: Institutional Whispers: Binance’s Shadow Over Crypto’s Fragile Descent

Generated by AI AgentCoin World
Friday, Aug 29, 2025 7:04 am ET1min read
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Aime RobotAime Summary

- On-chain data links Binance to Wintermute via large SOL/BTC/ETH transfers across Kraken, Gate.io, and KuCoin, suggesting potential market manipulation.

- The transfers preceded a 4% crypto market cap drop, triggering $924M in liquidations, with $750M from long positions amid heightened selling pressure.

- Bitcoin whales sold 50,000 BTC in two weeks, while short-term holders deposited 21,200 BTC to exchanges, reflecting fragile institutional demand.

- Traders migrate to DEXes like Hyperliquid ($2.4B 14-day volume) due to CEX manipulation fears, though Binance retains $185.8B in assets.

- Bitcoin tests $109,000 support as traders await Fed rate cut signals following Trump's removal of Fed governor Lisa Cook.

Binance has been linked to a significant market downturn through on-chain data revealing large-scale asset transfers to Wintermute, a leading market maker. These transfers, involving

Solana
(SOL),
Bitcoin
(BTC), and
Ethereum
(ETH), occurred across multiple exchanges, including Kraken, Gate.io, and KuCoin, and were highlighted by crypto analyst MartyParty as indicative of potential collusion between the two entities [1]. The analyst emphasized that the manipulation extended to other tokens like HYPE and
XRP
, raising concerns over the integrity of Binance's operations [1].

The on-chain activity was followed by a sharp drop in the total crypto market cap, which fell by 4% to $3.86 trillion within 24 hours. This decline triggered a significant deleveraging event, with $924 million in liquidations reported by CoinGlass. Of these, over $750 million involved long traders, suggesting that the market was caught off guard by the magnitude of the sell-off, potentially exacerbating a long squeeze [1].

Bitcoin’s on-chain data further reveals a notable trend among large investors. Over the past two weeks, Bitcoin whales reduced their supply by 50,000 BTC, and in the last 24 hours, short-term holders deposited 21,200 BTC onto exchanges. These figures underscore the increased selling pressure from both institutional and retail investors [1]. The QCP report attributes the market's fragility to "softer institutional demand," which made it particularly vulnerable to the sudden downturn [1].

Amid these developments, traders are increasingly shifting from centralized exchanges (CEXes) to decentralized exchanges (DEXes). Prominent trader "The White Whale" noted that concerns over market manipulation and forced liquidations on CEXes are driving this migration. Platforms like Hyperliquid have seen explosive growth, recording $2.4 billion in traded volume over the past 14 days. DeFiLlama data also shows Hyperliquid’s total value locked (TVL) reaching $685 million, although Binance continues to dominate with $185.8 billion in assets [1].

Looking ahead, Bitcoin is currently testing the $109,000 support level, a critical threshold previously acting as a strong resistance. A successful defense of this level could signal a bullish rebound. Meanwhile, traders are watching for broader market catalysts, including the potential for a September Federal Reserve rate cut, which has gained renewed attention following President Donald Trump’s decision to fire Fed governor Lisa Cook [1].

Source: [1] Why did crypto crash? On-chain data linking Binance and ... (https://coinedition.com/bitcoin-crash-binance-wintermute-on-chain-data/)