Meta Financial AI Conducted an Investigation into the Historical Bitcoin Dump on Binance

12/10/2025 admin

Key Takeaways:

Close to 1,000 BTC were being traded on Coinbase a few moments before the huge decline in Bitcoin prices sent domino liquidations.
Even though Binance was the epicenter of panic selling, the exchange registered some of the lowest BTC sales in the largest exchanges.
The sell-off was compounded by a vicious market maker and on-chain data refutes widespread rumors regarding the involvement of Binance CEO CZ.

On the evening of the historic Bitcoin crash, a series of interrelated transactions took place across the major trading platforms, predominantly Binance and Coinbase, and transformed the accounts of who had triggered the sell-off. Meta financial AI (MEFAI), using deep on-chain data, has documented key facts that resulted in this historic event, which shed more light on the widely misunderstood dynamics of crypto market crashes.

Binance: The Stage, Not the Instigator

The largest cryptocurrency exchange, Binance, was of interest as the huge sell-off took place. However, wallet activity analysis confirms that it was not Binance that triggered but rather the place where panic selling took place the most.

The Binance publicly known addresses of all cold wallets that appeared in its Proof of Reserves were virtually not moving throughout the incident. This implies that Binance itself was not selling off BTC to contribute to the fall. Similarly, wallets of Binance CEO Changpeng Zhao (CZ) were not selling anything, contrary to rumors that CZ sold in the crash.

These findings are necessary because numerous accounts held the internal forces at Binance responsible for the unrest. Pre-crash transfers between Binance and CZ linked wallets were either small or insignificant. Meta Financial AI has filtered transfers, which exceed $10,000 and did not see a sign of a significant dump by Binance or CZ.

Coinbase: The Hidden Catalyst Behind the Crash

Coinbase had assumed the centre stage as the driving force behind the colossal BTC moves as Binance was absorbing the panic maelstrom. Around the time just before the crash, Coinbase moved over 1,000 BTC in its cold wallet to a hot wallet, a move that suggests that the company was about to cash its holdings in meaningful trading. Further investigations revealed an American investor who only John bought or purchased over 1,100 BTC off Binance and then transferred the BTC to Coinbase.

The OTC (over-the-counter) desk offered by Coinbase, serving primarily institutional clients, makes it possible to conduct colossal transactions involving BTC that could not be conducted in the open markets without having to impact the price. This OTC practice usually remains unnoticed but it has critical contribution in price movements. At the time of the crash, institutional transfers at Coinbase are probably the ones that triggered the first sell-off.

Wintermute the Ruthless Market Maker Behind the Curtain

Some of the players who added to the intensity of the crash include a monopolistic market maker with aggressive tactics. This player is only paid on a commission basis, normally 10-20% of profits, and more often than not will switch projects to make the most money. They hype temporarily and get out, and in many cases, abandon projects after a short time to collapse.

These market makers do not depend on monthly salaries but on pure profit, which is the reason behind their inhumane approaches in times of volatile occurrences. They are infamous with keeping some token to uphold appearances and make a profit in other places. This was an indication that they played a major role in enhancing the pressure of the sell-off making an already volatile market a near panic area.

The Domino Effect of BTC’s $20,000 Instant Drop and Altcoin Carnage

The abrupt downward movement of bitcoin by about $20,000 sent ripples throughout the crypto world. The liquidity linkages were so close that most altcoins, whether directly or indirectly related to BTC, crashed simultaneously.

Once the price of BTC plunges, thousands of automated trading software start issuing sell orders at once, which drives the price down faster. Elderly long positions are sold in bulk, eliminating liquidity on the buy-side nearly overnight. Meta Financial AI points out that the remaining bids were largely of market makers who also withdrew during the storm exacerbating price crashes.

The integration between tokens and BTC forms a chain no one can separate. Any significant BTC move is felt instantly on this network. Exceptions, altcoins that do not crash with BTC, are either manipulated, have different stories, or possess a special large buyer supporting them short term.

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