Analysis: The BTC and ETH spot minute charts fluctuated abnormally yesterday, or a market maker robot sold out

Comparing news, Evgeny Gaevoy, founder of crypto market maker Wintermute, analyzed abnormal fluctuations in the 1-minute Bitcoin and ETH spot charts in the early morning of February 8. It indicates that it is likely that a market maker robot liquidated its position, and the loss amount may be as high as tens of millions of dollars. The abnormal fluctuation was caused by the robot's loss, not the market maker's malicious act, and Wintermute apparently did not participate in it.

Evgeny Gaevoy added that he is skeptical about rumors of large institutions bursting out of positions in the market, and even if it were true, it would not have a medium- to long-term impact. Compared to the previous collapse of Three Arrows Capital and FTX, news of the liquidation spread quickly at the time, and there were clear signs that the liquidation was true, such as agencies seeking rescue. However, most of the current market rumors come from unnamed accounts and have not been confirmed by reliable sources. The leverage in this cycle mainly comes from perpetual contracts. Trading platforms no longer use user assets to risk investing in low-liquidity assets or issue special credit as in the past. Credit crunch has led to institutional credit being less than 2 billion US dollars, and the impact is limited, making it difficult to trigger a chain liquidation like in 2022.

In the early morning of February 8, there were abnormal fluctuations in the 1-minute Bitcoin and ETH spot charts, which continued to fluctuate by more than 1% or even 3% in a single minute from 00:05 to 00:17.