Concerns from QCP Capital About Binance Price Distortions

Recent Bitcoin price movements continue to attract the attention of investors. QCP Capital questions the real reasons behind these accumulations, stating that the price distortions on Binance are not coincidental.

Former US President Donald Trump’s imposition of a 100% tariff on Chinese imports led to a sudden collapse in the crypto markets. Following this, the sharp price fluctuations, particularly on Binance, began to raise suspicions of manipulation among investors. In a recent report by QCP Capital, it was noted that while the price of Bitcoin dropped to $102,000, the prices of certain assets on Binance fell to unusual levels. For example, USD plummeted to $0.65, resulting in significant losses, while the trading price of the wBETH pair was executed at nearly a 90% discount. Another example, BNSOL, demonstrated a decline of over 80%, indicating a sudden disappearance of liquidity.

QCP stated that the severity of the impact on these assets solely on Binance suggests the possibility of “coordinated market manipulation.” Interestingly, Binance had announced a system update for these three assets a few days prior; this was perceived by some investors as a “premeditated loophole.”

According to the report, during the sell-off wave last Friday, a total of $19 billion worth of leveraged positions were liquidated. This signifies a historic level of liquidation in the crypto market. The short-term option volatility for 1-week Bitcoin contracts reaching as high as 98 illustrates the extent of panic. QCP emphasized that although the market quickly began to recover after this sharp drop, the deep liquidity loss has still not been compensated.

Although prices briefly recovered with a “softening” message from the White House, according to QCP, investors remain cautious. Funds are avoiding risky assets, and open positions in the derivatives markets have statistically dropped to historically low levels. Analysts warn that countermeasures China may take could lead the markets to another wave of fluctuations. According to QCP’s assessment, “This event is not a closure; it was just the first test — the fragile points of the market have now become more apparent.”