Wintermute dumps BTC and ETH. | Credit: AP Photo/Mark Lennihan. Key Takeaways Wintermute has sharply reduced its on-chain crypto holdings over the past three weeks. On-chain trackers show large transfers of BTC and ETH, with some estimates reaching $1.5 billion. The selling comes amid broader market weakness, but does not necessarily signal distress. Wintermute, one of the crypto industry’s most popular market makers, has drawn renewed attention after on-chain data revealed a sharp reduction in i ...

Core Insights - Internet Computer (ICP) experienced a significant pullback from its recent rally, trading just below $5 after reaching a peak of over $6.50, marking a nearly 25% decline from Tuesday's high [1] - The trading activity was notably intense, with 20.48 million tokens exchanged, representing approximately 418% above the average trading volume [2] - Despite the recent reversal, ICP's strength is notable in the context of a broader crypto market pullback, with continued institutional interest reflected in elevated trading volumes [3] Technical Analysis - The current technical setup indicates that ICP is stabilizing above a support level of $4.80, which has attracted buyers in recent sessions [4] - Resistance levels are identified between $5.20 and $5.40, where previous rallies faced selling pressure; a sustained push above this zone could signal a return to bullish momentum [4] - Failure to maintain support at $4.77–$4.80 could lead to a deeper correction towards the $4.50 range [4]

Market Overview - Bitcoin (BTC) is experiencing downward pressure after its first October loss since 2018, with potential declines to $100,000 or below indicated by market charts [1] - The broader market is witnessing capital outflows, as evidenced by a decline in futures open interest [1] - The focus for BTC is on its 200-day simple moving average, currently around $107,000 [1] Derivatives Positioning - BTC and ETH futures open interest remained largely unchanged, while altcoin open interest, including XRP, HYPE, and DOGE, has dropped, indicating capital outflows from the broader market [3] - The open interest-normalized cumulative volume delta for BTC and ETH has declined, suggesting a bias towards short positions [3] - Volatility indexes for bitcoin and ether are rising, indicating renewed expectations for price turbulence [3] Altcoin Market Dynamics - Altcoins such as ethena (ENA) and doublezero (2Z) faced heavy sell pressure, with ENA and 2Z slumping by 7% in the past 24 hours and a cumulative 30% decline over the past week [3] - The average relative strength index for altcoins is at 37.51/100, indicating oversold conditions that could lead to a relief rally [3] - The entire crypto market cap is currently at $3.59 trillion, having lost $600 billion in value since October 6 [3]

Core Insights - A sudden tariff announcement from U.S. President Donald Trump led to a significant selloff in global markets, particularly in the crypto sector, resulting in over $19 billion in leveraged positions unwinding within 24 hours [1] - The event highlighted the high level of leverage in crypto trading, with Bitcoin and Ethereum experiencing the largest losses, while altcoins faced even steeper corrections [3][4] Market Reaction - Over 1.6 million traders were liquidated, with nearly 87% of positions being long, indicating a strong market reaction to the tariff news [2] - Open interest in Bitcoin futures dropped by more than 30% during the selloff, reverting leverage levels to those last seen in May [5] Sentiment Shift - Funding rates turned negative across most exchanges, signaling a shift in market sentiment from optimism to caution [6] - Analysts described the situation as a "stress test" for market structure, revealing the increasing influence of derivatives and the limitations of algorithmic risk management during periods of volatility [6] Recovery Phase - By October 13, Bitcoin rebounded to above $114,000, recovering nearly 12% from the lows, while Ethereum rose to around $4,100 [7] - Spot Bitcoin ETFs experienced $420 million in inflows during the recovery, helping to stabilize prices [7] Altcoin Performance - Altcoins like Solana, XRP, and Avalanche showed modest rebounds, indicating selective risk appetite rather than a full market recovery [8] - The bounce was attributed to institutional buying and automated market makers rebuilding liquidity after the liquidations [8] Ongoing Volatility - Despite the recovery, implied volatility in Bitcoin options exceeded 50%, and futures spreads remained tight, reflecting caution among professional traders [9] - Analysts warned that a rapid buildup of leverage could lead to another significant unwind if macroeconomic conditions worsen [9]

Core Insights - Binance's trading systems remained stable during the recent crypto market turmoil caused by new U.S. tariffs on China, countering speculation of platform faults exacerbating the sell-off [1][4][6] - The exchange acknowledged temporary depegging issues for certain assets and announced a compensation package of $283 million for affected users [2][7] Market Impact - President Trump's announcement of a 100% tariff on all Chinese imports led to a significant crypto market meltdown, erasing nearly $560 billion in market value [3][4][5] - The increased trade tensions resulted in $19 billion lost in a single day, with over $7 billion liquidated in just one hour, affecting approximately 1.6 million traders [5][6] Binance's Response - Binance conducted a comprehensive review of its operations during the volatility and confirmed that its core trading systems remained operational despite the market chaos [6][7] - The exchange noted that the forced liquidation volume on its platform was relatively low compared to total trading volume, indicating that the volatility was primarily driven by overall market conditions [7]