Analysts warned that there were “blatant manipulation” between exchanges and large traders, after the crash experienced within the crypto market. The crash wiped out millions of leveraged dollars in less than 24 hours.
The crash, which coincided with the new 100% tariffs imposed by the US President Donald Trump to Chinaerased more than $19 billion in leveraged positions in less than a day.
The investor Mani Thawani maintains that the signs were obviousfollowing familiar faces from the exchanges that maintained an unusual calm while the market showed micro-falls.
How did the crypto market crash come about? Analyst shares his hypothesis
“90% of the traders I was in long positions. It was a matter of time before someone pressed the button,” said Thawani. The term cryptocurrency crash refers to a abrupt and widespread collapse of pricesaccompanied by a wave of forced liquidations.
In this case, the trigger external It was the trade war between the US and China, but The damage “would have developed” within the structure of the ecosystem itself.
According to the analyst, many exchanges operate under the B-Book modelin which user orders are not sent to the real market, but are cleared internally.
In practice, that It means that by losing the traders they lose, they exchange they win. Thus, if the market rises too much, the platforms risk their own funds.
With millions of open long positions and moderate leverages (3x to 4x), the exchanges They had a clear incentive to “reset” the board, Therefore, a coordinated movement would have been enough to cause a technical “crash”: tokens collapsing more than 80%, prices falling to zero for seconds and a cascade of automatic liquidations.
Thawani maintains that this type of maneuver is possible because the crypto market remains a “casino without arbitrageurs.” Leveraged trading, affiliate commissions and hidden incentives They create an ecosystem where users’ losses equal the platforms’ profits.
While regulators watch from afar, retail investors assume all the risk. Once liquidated, the funds disappear and the market “reboots.” For the exchangesthe cycle begins again.
Cryptocurrencies sank up to 23% after the announcement of US tariffs on China
Cryptocurrencies collapsed up to 23% this Friday and Bitcoin (BTC) pierces US$113,000 after US President Donald Trump announced the application of an additional 100% tariff on Chinese imports. which rekindles fears that the trade war will escalate further.
In this way, Bitcoin gives up 8% in the last 24 hours and operates near the US$112,000, according to Binance. For its part, Ethereum (ETH) HE plummets 12.5% and quotes in US$3,830.
The rest of the altcoins follow a similar path. Binance Coin (BNB) loses more than 10%, while XRP sinks 17% and Solana (SOL), falls 13.7%. Dogecoin (DOGE), meanwhile, leads the declines, with a collapse of 23%.
Given the global collapse of cryptocurrencies, Trading volume skyrocketed on some local exchanges, especially on non-stable assets. In Lemon, for example, Crypto purchases tripled the usual amounts, according to internal data.
Source: Ambito
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