Cathie Wood Blames Binance for Bitcoin’s October Crash

Cathie Wood believes that the worst of Bitcoin is now behind it, following the Binance liquidation process of up to 28B on Oct. 10. The industry stakeholders question the role of the exchange in the market mayhem. 

ARK Invest CEO Cathie Wood thinks that Bitcoin has passed its storm.  The fund manager attributes the recent turbulence to the technical failure of Binance on October 10. 

CryptosR_Us on X claims that Wood stated that the crash caused about 28 billion forced deleverage.  

Source: CryptosR_Us 

Bitcoin suffered the greatest blow in the incident. The reason it was the first target was because of the high liquidity of the digital asset. Wood believes that BTC will form a foundation between 80,000 and 90,000 and then proceed to climb.  

Binance Software Glitch Triggers Industry-Wide Panic

The incident on October 10 was a result of the failure of a Binance oracle. On the exchange, as StarPlatinum_ confirmed on X, on Oct 6, the exchange announced pricing adjustments of BNSOL and wBETH. It was to be implemented on Oct 14.  

This opened a four-day gap. Chaos occurred between 21:36 and 22:16 UTC on the 10th of October. USDe fell to $0.6567 on Binance, and other exchanges maintained it at 0.90 to 0.95. wBETH fell 88% to about $430. BNSOL fell 82 % to $34.90.  

Binance hurried its oracle repair to Oct 11. Users were later compensated by the exchange to the tune of about 283M. On-chain data indicated a transfer of over 10B in the 24-48 hours before the crash.  

Market Manipulation Issues Emerge

Star_okx created solemn questions for X regarding industry practices. The crypto executive condemned the idea of following short-term interests rather than building infrastructure. Star_okx posted to Twitter: People have underestimated the impact of 10/10.  

The event harmed confidence in the ecosystem. Star_okx referred to successive reintroductions of dubious projects and price fixing of low-quality tokens. Millions of users were lured into assets endangered.  

StarPlatinum_ was aware of suspicious trading in advance of the crash. A new account invested in 1.1B BTC/ETH shorts in the last two hours. The role attracted profits of between $160 M and $200M. Wintermute and Jump, which are major market makers, were only barely active within the critical window.  

Institutional Confidence is not lost.  

Wood pointed out that coerced selling is over. Bitcoin is no longer the subject of doubt as an asset class by institutions. They are now deciding the right sizes of allocation since it is not highly correlated with traditional markets.  

The discussion has changed to the timing of the cycles. Wood is of the opinion that the downside phase is probably over. She anticipates a narrowing in the existing range followed by an increase.

The post Cathie Wood Blames Binance for Bitcoin’s October Crash appeared first on Live Bitcoin News.