Wintermute's Aggressive Short Bets Spark Weekend Price Plunge

Bitcoin's price plummeted to $75,500 on Sunday morning after failing to hold above $77,000 over the weekend. The sudden dip came as Wintermute, a prominent market maker, built up significant short positions in BTC and other assets.

According to Onchain Lens, Wintermute sent nearly $60 million in BTC and SOL to Binance and Coinbase, likely intending to sell. The company also holds a massive futures position on Hyperliquid, with a $146.19 million short position against a $13.85 million long position.

The price drop was not limited to Bitcoin, as many altcoins followed suit. Ethereum (ETH) dropped by 5% to below $2,400, while XRP fell by 6.5%. The total liquidations on CoinGlass data topped $350 million, with over 90,000 traders getting affected.