TradFi Events Cause $2.24B Crypto Liquidation: Wintermute CEO Responds
Over $2.24 billion in cryptocurrency positions were liquidated on February 3, 2025, following former U.S. President Donald Trump’s executive order imposing tariffs on China, Canada, and Mexico. Wintermute CEO Evgeny Gaevoy emphasized that the crash was driven by traditional finance (TradFi) events, not crypto market manipulation.
Macroeconomic Shocks Drive Market Volatility
Trump’s tariffs sparked fears of a global trade war, triggering a broad sell-off across equities and crypto. Bitcoin briefly fell below 91,500,187,800. Analysts linked the downturn to macroeconomic uncertainty and capital flight to safe-haven assets like gold and bonds.
Key Data:
- $2.24B liquidated in crypto derivatives.
- Bybit CEO Ben Zhou estimated total liquidations could exceed $10B due to cascading margin calls.
- Bitget Research analyst Ryan Lee noted: “Investors are prioritizing risk mitigation amid geopolitical tensions.”
Wintermute CEO Addresses Manipulation Allegations
Traders accused crypto firms of orchestrating sell-offs to profit from lower prices. Gaevoy dismissed these claims:
“Our on-chain transfers are operational, moving inventory between exchanges. Crypto’s volatility now mirrors TradFi markets—ignoring this reality hinders trading success.”
Historical Context:
- In August 2024, top market makers sold **130,000 ETH (valued at 3,000 to $2,200.
- Wintermute accounted for 47,000 ETH of these sales, per blockchain data from Scopescan.
Why Crypto Markets Reflect TradFi Trends
- Institutional Overlap: ETFs and hedge funds hold 35% of Bitcoin, amplifying cross-market reactions.
- Liquidity Pressures: Market makers face redemption demands during crises, forcing asset sales.
- Sentiment Contagion: Crypto’s $4T+ market cap ties it to macroeconomic shifts.
Analysts Warn of Continued Uncertainty
- DeepSeek’s AI algorithms worsened volatility via automated liquidations.
- Tokenized Real-World Assets (RWAs) surged to a $17B all-time high as investors sought stability.
- Bitget’s Lee predicts turbulence until global trade policies stabilize.
The 2025 crash underscores crypto’s deepening ties to global economics. Investors must diversify into stablecoins and RWAs while monitoring geopolitical risks.
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Meta Title: Crypto Crash Tied to TradFi Events: .2.24B liquidations highlight TradFi-crypto ties. Expert insights inside.
$2.24B Crypto Liquidation Driven by TradFi Events
A $2.24 billion cryptocurrency liquidation occurred on February 3, 2025, after former U.S. President Donald Trump’s tariffs reignited global trade war fears. Wintermute CEO Evgeny Gaevoy stressed that traditional finance (TradFi) factors—not industry manipulation—caused the crash.
Macroeconomic Triggers Dominate Volatility
Bitcoin fell to 1810B due to margin call cascades.
Key Insights:
- Bitget Research’s Ryan Lee: “Investors fled to gold and bonds amid economic anxiety.”
- DeepSeek’s AI algorithms accelerated sell-offs via automated trading.
Wintermute Denies Manipulation Amid ETH Sell-Off
Gaevoy clarified Wintermute’s 2024 sale of 47,000 ETH was routine inventory management:
“Crypto’s maturity mirrors TradFi volatility. Conspiracies ignore reality.”
2024 Precedent:
- Market makers sold 130,000 ETH ($290M) during Ethereum’s 27% price drop.
Crypto-TradFi Interdependence
- Institutional Holdings: ETFs and funds hold 35% of Bitcoin.
- Liquidity Strains: Market makers face redemption pressures.
- RWA Surge: Tokenized assets hit $17B as investors hedge risks.
Outlook: Strategic Adaptation Required
Analysts urge diversification into stablecoins and RWAs. Understanding TradFi catalysts is now critical for crypto traders.
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