The crypto market is facing a major crisis as Bitcoin struggles to stay above the $107,000 mark, hovering dangerously close to its key support zone between $105,000 and $110,000. Ethereum is also under pressure, trading near $3,400, a sign of broader weakness across altcoins.
The total market capitalization has slipped to around $3.5–$3.6 trillion, indicating tightening liquidity and growing caution among traders.
Meanwhile, Wintermute, a leading crypto market maker, has officially denied reports claiming it planned to sue Binance over last month’s flash crash, when Bitcoin suddenly plunged 15% to below $103,000.
Rumors That Got Out of Hand
On October 10, Bitcoin’s sharp decline wiped out nearly $20 billion in leveraged positions across exchanges, causing widespread chaos in the market. Some users on X alleged that Wintermute, which provides liquidity for Binance, suffered major losses due to a failure in Binance’s auto-deleveraging mechanism, a system designed to protect traders during periods of extreme volatility.
One user, under the handle WhalePump Reborn, even claimed that Wintermute was preparing to sue Binance to recover its losses. The post quickly gained traction, sparking confusion across crypto circles.
However, Wintermute CEO Evgeny Gaevoy promptly dismissed the claims as “complete nonsense,” clarifying, “We never had plans to sue Binance, nor do we see any reason to do so in the future.”
Binance and Zhao Urge Calm
The situation didn’t end with Wintermute’s denial. Former Binance CEO Changpeng Zhao (CZ) also weighed in, urging followers to “verify with official sources” before believing such rumors. Zhao emphasized how easily misinformation spreads in the crypto space — especially during downturns when fear and uncertainty are already high.
Interestingly, despite Gaevoy’s clarification, Wintermute drew criticism for transferring roughly $700 million to a Binance wallet just hours before the flash crash. Although the timing raised suspicions, no direct link between the transfer and the market drop has been established.
Market Still on Edge
The denial comes as the broader crypto market remains fragile. Prices dropped another 3% on Monday, dragging total market capitalization down to around $3.65 trillion. Analysts say there wasn’t a single major trigger, but false rumors like the Wintermute-Binance story, coupled with $1.3 billion in liquidations, certainly added to the pressure.
Adding to the volatility, Bitcoin whales continue to offload holdings, keeping prices above $100,000 but maintaining an uneasy atmosphere in the market.
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FAQs
The market is falling as Bitcoin struggles near $107,000, liquidity tightens, and traders react to fear and recent liquidation spikes.
No, Wintermute’s CEO confirmed the firm never planned to sue Binance, calling the circulating claims “complete nonsense.”
Former CEO Changpeng Zhao urged users to check official sources, warning against spreading unverified information during market dips.
Analysts expect continued volatility as whales sell and traders stay cautious, though support around $105,000 remains a key level to watch.
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