The Truth Behind the Crypto Market Crash
Following a recent crypto market crash, Wintermute founder wishfulcynic took to social media to emphasize the need for more careful language when discussing market issues.
Real Causes of the Market Crash
The founder pointed out that the crash was not merely a technical glitch, but a result of macroeconomic news and high leverage in a market with insufficient liquidity. Such phenomena are particularly evident during bear markets.
The Mistake of Blaming a Single Entity
- Market participants often look for scapegoats, placing blame on individual exchanges.
- This approach is dishonest and overlooks deeper market issues.
- The crypto market needs rational analysis and comprehensive solutions.
Exchange Responses
Binance's report acknowledged technical issues but emphasized they were not the main cause of the crash. OKX's CEO, meanwhile, blamed Binance's marketing efforts for exacerbating market volatility.