Pantera Capital partners speculate: Recent cryptocurrency market sell-off triggered by large Asian entities

Pantera Capital general partner Franklin Bi posted on platform X speculating that the recent large-scale sell-off in the crypto market was driven not by a trading firm focused on cryptocurrencies, but by a large entity from outside the crypto space in Asia.

This entity has limited crypto trading counterparts, so it went unnoticed by the crypto community. Franklin Bi speculated that this entity engaged in leveraged trading and market making on Binance → closed yen arbitrage trades → faced an extreme liquidity crisis → obtained about a 90-day grace period → attempted to recover losses through gold/silver trading but failed → and was forced to close positions this week.