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Pantera Capital partner speculates that the recent sell-off in the crypto market was triggered by large Asian entities outside the crypto space.
Pantera Capital's general partner Franklin Bi wrote that the recent large-scale sell-off in the crypto market was not driven by a trading firm focused on cryptocurrency, but rather by large entities from outside the crypto circle in Asia.
This entity has limited crypto trading counterparts, which is why it went unnoticed by the crypto community.
Franklin Bi speculates that this entity engaged in leveraged trading on Binance → closed yen arbitrage trades → faced an extreme liquidity crisis → received about a 90-day grace period → attempted to recover through gold/silver trading but failed → and was forced to close positions this week.
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