Analysis: Yesterday, BTC and ETH spot minute charts experienced abnormal fluctuations, possibly caused by a market maker robot experiencing a liquidation explosion.

BlockBeats News, February 9 — Crypto market maker Wintermute founder Evgeny Gaevoy analyzed the abnormal fluctuations in the Bitcoin and ETH spot 1-minute charts on the early morning of February 8. He stated that it is very likely caused by a market maker bot experiencing a liquidation, with losses possibly reaching tens of millions of dollars. The abnormal volatility was caused by losses from the bot, not malicious intent by the market maker, and Wintermute was not involved.

Evgeny Gaevoy also added that he is skeptical of rumors about “large institutions liquidating” in the market, and even if such events did occur, they would not have a long-term impact. Comparing to the collapses of Three Arrows Capital and FTX, when liquidation news spread quickly and clear signs indicated the liquidations were real, such as institutions seeking help, the current market rumors mostly come from anonymous accounts and have not been confirmed by reliable sources. The leverage in this cycle mainly comes from perpetual contracts, and trading platforms no longer take the risk of using user assets to invest in low-liquidity assets or issue special credit, as they did in the past. Tightening credit has resulted in institutional credit scales below $2 billion, with limited impact, making it unlikely to trigger a chain liquidation like in 2022.

Earlier reports indicated that on the early morning of February 8, Bitcoin and ETH spot 1-minute charts experienced abnormal fluctuations, with single-minute price swings exceeding 1%, and even reaching 3%, from 00:05 to 00:17.