New Theory on Why Bitcoin Fell: Never Been Mentioned Before
Franklin Bi, a partner at Pantera Capital, made a noteworthy assessment regarding the recent sharp sell-off in the Bitcoin and cryptocurrency market.
According to Bi, the large-scale sell-off in the market may not be orchestrated by a trading company directly linked to the crypto sector, but rather by a large, Asia-based external institution.
Franklin Bi suggested that the institution in question did not come under the radar of the crypto community because it traded with a limited number of counterparties in the crypto market. He stated that this situation led to the source of the selling pressure not being clearly identified for a long time.
Related News: Bloomberg Analysts Discuss Bitcoin and Altcoin Declines: “The Coldest Crypto Winter in History” - They Explain 10 Reasons Why
According to Bi’s scenario, the process began with the institution conducting leveraged trading and market-making activities on Binance. Subsequently, the liquidation of Japanese yen arbitrage positions led to a chain reaction of liquidity shortages. These developments allegedly caused the institution to be dragged into a serious liquidity crisis.
Allegedly, the institution was granted an additional period of approximately 90 days. During this time, it attempted to recover its losses through gold and silver transactions; however, this strategy also failed. As a result, it is claimed that the institution resorted to mandatory position closures this week, which triggered the sharp sell-off observed in the crypto market.
*This is not investment advice.
Continue Reading: New Theory on Why Bitcoin Fell: Never Been Mentioned Before
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