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Quick analysis of the situation
Ah, the weekend—the sacred time when most of us humans take a break from work, sit back, relax, maybe binge-watch a series or three, and certainly don't expect global financial chaos. But not this past weekend. No, my friends, the crypto market had different plans, and spoiler alert: it wasn’t the feel-good drama we all hoped for.
In an unexpected twist that can only be likened to the plot of a bad B-movie, the crypto world witnessed a cataclysmic crash, erasing over $19 billion in mere moments. And what was the culprit? Who would have guessed that a surprise 100% tariff announcement on Chinese tech exports by former President Donald Trump could be the proverbial straw that broke the blockchain's back?
But hold your horses! While many of us were left reeling from the market mayhem, analysts took to their keyboards, piecing together thoughts on whether it was a tempest or a tectonic shift—perhaps a bit of both. The crash? Not a spontaneous reaction, but a well(choreographed) catastrophe.
The Crash Was Too Synchronized To Be A Coincidence
Let’s talk timing. The sell-off commenced right after the US markets closed on Friday. Kudos to the masterminds behind this, as they seemed to have a Ph.D. in the art of market manipulation. Crypto commentator Ran Neuner was among the first to raise an eyebrow. This wasn’t a mere fluke; this was a finely tuned orchestration. Trading desks in Europe and Asia were sound asleep, and as if on cue, major oracles displayed erratic price data, liquidity evaporated faster than water in the desert, and many users found themselves locked out of their accounts—almost as if the market gods said, "You shall not pass!"
I mean, what are the odds that multiple data providers like CoinGecko would mysteriously malfunction just when people might want to check in on their portfolios? Neuner thought it wasn’t just a series of unfortunate events—it was a symphony of chaos, a beautifully composed disaster.
Binance’s Collateral System Was Exploited?
Now, let’s throw another theory into the mix courtesy of a fellow named ElonTrades. His analysis suggests the crash was like a well-cooked soufflé—flaky and deceptive. It turns out, there was a chink in Binance’s armor, a weakness in its internal pricing mechanism, ripe for the picking.
The theory goes that this wasn’t a spontaneous catastrophe but a calculated assault leveraging Binance’s own systems against it. Traders jumped at the opportunity, dumping hefty amounts of USDe and other tokens to force the price down, all while maintaining their commonsense elsewhere. This artificial price plunge triggered a cascade of liquidations that would make a waterfall jealous.
Folks, when you see billions evaporating quicker than a mirage in the desert, you know something fishy is going on. Between $500 million to $1 billion went up in smoke as traders—those connivers—opened shorts on BTC and ETH on Hyperliquid, going on to rake in a jaw-dropping profit of $192 million. As if that wasn’t enough, it just so happened that Trump's announcement hit the news, adding panic like sprinkles on a sundae.
A Silver Lining in the Ledger
Yet, like a phoenix from the ashes, cryptocurrencies are finally starting to show some signs of recovery. At the moment, Bitcoin is pulling a remarkable comeback, trading at $115,025, up by a sprightly 2.85% in the past 24 hours. Ethereum isn’t lagging either, climbing up to $4,160, with an impressive 8.5% increase.
So, folks, buckle up! Whether this weekend was a prelude to doom or just a rough patch in the wild west of crypto, one thing is certain: the blockchain bravado will always find its way back to the moon (with a few bumps along the way, of course). Remember, in the world of digital assets, there’s never a dull moment!
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Image(s) are provided by Unsplash and/or other free sources. They are illustrative and may not represent the content truly.
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Please, behave!