Tag Archives: traders

Binance cracks down on market makers: What traders need to know now

Binance cracks down on market makers: What traders need to know now

Binance just announced stricter rules for market makers and token issuers, and this move deserves careful attention from anyone watching how crypto markets mature. The exchange now requires projects to disclose their market maker identity, legal entity, and key contract terms covering inventory and fee handling. It explicitly bans profit-sharing and guaranteed-return arrangements between projects and market makers, as well as opaque token lending that permits broad, undefined use of borrowed tokens. These structures often hide incentives that drive manipulative behaviour.

They will also monitor market maker activity more closely, watching for selling that conflicts with vesting schedules, one-sided quote provision, or trading that artificially inflates volume. The platform reserves the right to blacklist firms that engage in these practices. Bloomberg separately notes a prohibition on any revenue-sharing models tied to market-making on Binance. This is not a minor policy tweak. It represents a fundamental shift toward transparency in a part of crypto markets that has long operated in the shadows.

Market makers play a vital role in healthy trading environments. They tighten spreads and provide depth, allowing traders to enter and exit positions without excessive slippage. But when market makers receive payments to pump volumes or support price levels at all costs, they create fake liquidity that misleads traders about real demand. The new Binance rules aim to separate genuine market making from arrangements designed to manufacture the appearance of activity. By forcing disclosure of who the market maker is and what they can do, and by banning profit-sharing and price-manipulation deals, Binance tries to reduce conflicts of interest and wash trading that drew criticism after past market meltdowns. Tokens that relied on aggressive, opaque market making to appear healthier than they truly were could see wider spreads or lower volumes in the near term. Projects with organic demand and clean arrangements may stand out more clearly once the noise fades. This short-term discomfort could actually help investors distinguish between substance and spectacle.

The real test of these new rules will be enforcement. Binance says it will take swift, decisive action against misconduct, including blacklisting market makers. But it remains unclear whether blacklisted entities will be publicly named or only handled internally. Transparency about enforcement would strengthen the credibility of this policy shift. Without public accountability, bad actors could simply migrate to less scrutinised venues while continuing similar practices. Watch how liquidity metrics change, especially for smaller or recently listed tokens. Persistent widening spreads or sharp drops in reported volume could signal that prior activity depended heavily on now-constrained arrangements.

Also, watch whether rival exchanges adopt similar policies or position themselves as more flexible alternatives. If Binance’s stricter stance becomes an industry norm, it could reduce room for aggressive market making across the entire ecosystem, not just on one venue. That would represent meaningful progress toward more honest price discovery.

These changes reflect a necessary evolution in how crypto markets operate. I have seen how opaque arrangements can undermine trust. When market makers and projects hide their relationships, they create information asymmetry that harms retail participants the most. Requiring disclosure does not eliminate all manipulation, but it raises the cost of deceptive behaviour and makes it easier for observers to spot red flags. Banning profit sharing between projects and their market makers removes a powerful incentive to coordinate trades that serve internal interests rather than genuine supply and demand. This aligns with a broader principle I hold: decentralised systems work best when incentives are transparent and aligned with long-term network health, not short-term price engineering.

That said, I approach these rules with measured optimism. Regulation and self-regulation in crypto must balance market integrity with innovation. Overly rigid constraints could push legitimate market-making activity offshore or into decentralised venues where oversight is minimal. The goal should not be to eliminate market making but to ensure it serves real liquidity needs rather than marketing narratives. Binance’s focus on specific harmful practices, such as front-running token release schedules or providing one-sided quotes, shows a nuanced understanding of where manipulation occurs. This targeted approach is more promising than blanket restrictions that might stifle useful activity. I also believe that traditional financial tests, such as the Howey test, often fail to capture the realities of decentralised systems. Similarly, market-making rules designed for traditional equities may not translate perfectly to crypto. Binance appears to be crafting rules specific to the dynamics of digital asset markets, which is the right direction.

 

Source: https://e27.co/binance-cracks-down-on-market-makers-what-traders-need-to-know-now-20260326/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

What Bitcoin’s US$70,000 support zone means for traders after this week’s volatility

What Bitcoin’s US$70,000 support zone means for traders after this week’s volatility

The cryptocurrency market just witnessed a powerful reminder of how leverage and sentiment can collide to create violent price moves. A sharp Bitcoin-led rally forced over-leveraged short sellers to cover, triggering around US$471 million in crypto derivatives liquidations across major exchanges within 24 hours. About US$471 million of futures positions were wiped out, with roughly US$348 million from shorts and US$123 million from longs as BTC pushed toward US$74,000.

This was not random noise. It was a classic short squeeze, fuelled by crowded bearish positioning, negative funding, rising open interest, and strong ETF inflows into BTC and ETH. I have seen this pattern repeat across cycles, and each iteration teaches the same lesson. When leverage builds on one side of the market, the reversal does not just correct the price; it resets positioning with force.

The scale of the flush matters because it reveals where the real risk lives. Data from derivatives trackers shows roughly US$471 million in crypto futures liquidations over 24 hours, with shorts taking the majority of the hit at about US$348 million versus US$123 million in longs, as Bitcoin and Ethereum ripped higher toward key resistance near US$74,000. This pattern matches reporting that a BTC surge to the mid-70,000s erased over US$500 million in leveraged positions, with the largest daily wipeout of shorts since late February in some samples.

The pain concentrated in major coins such as Bitcoin, Ethereum, and other large caps, where leverage runs deepest. That tells us the move was big enough to reset a lot of leveraged positioning, not just a minor intraday shakeout. When the largest shorts get squeezed in the most liquid names, the signal travels fast through the entire derivatives complex.

Behind the numbers sat a textbook setup. After recent macro and geopolitical volatility, many traders rebuilt short exposure, with funding rates turning negative and open interest climbing as BTC dipped into the mid-60,000s. When spot prices reversed higher amid renewed ETF inflows and easing macro fears, exchanges’ risk engines began liquidating underwater shorts into a rising market, forcing additional buy orders and accelerating the upside.

Similar dynamics played out on ETH, where more than US$100 million in shorts were liquidated in a day, compared with a much smaller amount of long liquidations. Bears leaning too hard into downside with high leverage can turn into forced buyers, amplifying rallies beyond what spot demand alone would justify. I view this as a structural feature of modern crypto markets, not a bug. Derivatives and ETF flows now act as powerful amplifiers, and anyone trading without watching funding rates and open interest is flying blind.

This squeeze did not happen in isolation. Global markets on 6 March 2026 were dominated by risk-off sentiment as the conflict among the US, Israel, and Iran drove a broad retreat in risk assets. While US stock futures showed some stability early in the day, Asian and European equities fell sharply, heading toward their steepest weekly losses in years. US major indices closed lower on Thursday due to soaring oil prices and geopolitical fears. The Dow Jones dropped 784.67 points to close at 47,954.74. The S&P 500 declined 0.56 per cent to 6,830.71. The Nasdaq Composite slipped 0.26 per cent to 22,748.99.

Overseas, the MSCI Asia Pacific Index fell 1.1 per cent on Friday, marking its worst week in six years. Japan’s Nikkei 225 fell 0.66 per cent to 54,915 points. In Europe, major indices such as the FTSE 100, DAX, and CAC 40 declined by 1.5 per cent to 1.6 per cent amid ongoing energy disruption fears. Oil prices anchored the move, with WTI crude surging above US$80 per barrel following reports of an Iranian strike on an oil tanker and the closure of the Strait of Hormuz. Rising energy and labour costs fuelled fears that the Federal Reserve would maintain high interest rates to combat sticky inflation.

The US Dollar gained as a safe-haven, heading for its best week since 2024. Gold prices remained volatile, briefly hitting US$5,400 earlier in the week before settling near US$5,100 by Thursday. Investors awaited the US Non-Farm Payrolls and Retail Sales reports for February to gauge the health of the labour market. In that backdrop, Bitcoin’s initial surge toward US$74,000 stood out as a sharp counter-trend move before macro gravity reasserted itself.

Post-event, derivatives metrics suggest that some excess leverage on the short side has been cleared, with funding rates normalising and open interest stabilising slightly lower. Order book data still shows dense liquidity zones both above and below the current price, and prior episodes suggest that traders are quick to re-leverage once volatility cools.

For risk monitoring, the key signals are funding rates, especially if they flip extreme again, sharp jumps in open interest, and any renewed surge in ETF flows that could interact with crowded futures positioning. The immediate squeeze may be over, but this remains a high-leverage environment where sudden price moves and positioning shifts can still trigger large, fast liquidation cascades. I watch these signals closely because they often telegraph the next inflection before price confirms it.

Bitcoin now trades down 1.72 per cent to US$71,244.79 over the past 24 hours, underperforming a slightly weaker broader market, primarily driven by a risk-off shift amid escalating Middle East tensions. It shows a strong correlation of 0.86 with Gold, indicating a shared macro-driven move. The primary reason remains geopolitical risk from the US-Iran conflict, which spiked oil prices and triggered a flight from risk assets.

A secondary factor was technical rejection at the key US$74,000 resistance level, where selling pressure overwhelmed buyers. Near-term, if BTC holds above the US$70,000 to US$71,000 whale bid zone, it could retest US$74,000. A break below risks a move toward US$67,500. I see this range as the battlefield where macro narrative and derivatives positioning will duel for control.

What should readers take from this sequence?

  • First, the reported US$471 million liquidation wave resulted from an aggressive short buildup caught offside by a strong Bitcoin-led rebound, not from a structural failure in the market. It has cleared some speculative froth, and derivatives activity and ETF flows remain powerful amplifiers, so future positioning extremes could again translate into abrupt squeezes rather than smooth trend moves.
  • Second, in a world where oil can jump above US$80 on geopolitical headlines, and equities can post their worst week in years, crypto will continue to mirror macro risk while retaining its own leverage-driven volatility.
  • Third, independent analysis matters more than ever. Crowded narratives can flip fast when funding rates turn, open interest spikes, or ETF flows accelerate. I prefer to track the plumbing, not just the price.

With all that said, I expect volatility to remain elevated as markets digest geopolitical shocks, inflation data, and the ongoing tug-of-war between risk-on and risk-off flows. Bitcoin’s correlation with Gold at 0.86 reminds us that macro drivers can dominate in the short term, even for an asset built on decentralisation. The derivatives layer adds a crypto-native amplifier that can exaggerate moves in either direction. If funding rates flip extreme again or open interest jumps while price consolidates, prepare for another squeeze. 

 

Source: https://e27.co/what-bitcoins-us70000-support-zone-means-for-traders-after-this-weeks-volatility-20260306/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Fear and greed at 28: Why traders are fleeing crypto right now

Fear and greed at 28: Why traders are fleeing crypto right now
Most regional indices closed lower, weighed down by anxieties over US technology earnings and the looming announcement of President Donald Trump’s nominee for Federal Reserve chair. While Japan’s Nikkei 225 managed to stay slightly in positive territory amid choppy trading, Hong Kong and mainland Chinese benchmarks retreated, ending what had otherwise been a strong monthly rally. The divergence in performance underscored the growing sensitivity of global markets to both domestic policy signals and external shocks.
At the heart of the day’s market dynamics lay two dominant narratives:
  • First, concerns mounted over whether the massive artificial intelligence investments made by US tech giants would translate into tangible returns. Mixed earnings reports from major firms failed to reassure investors, casting doubt on the sustainability of the AI-driven valuation surge that has powered equity markets in recent quarters.
  • Second, anticipation built around the imminent nomination of the next Federal Reserve chair. With interest rate policy hanging in the balance, traders braced for potential shifts in monetary direction under a new leadership aligned with the Trump administration’s economic priorities. These dual uncertainties created a risk-averse backdrop across Asia.
This aversion to risk extended beyond equities into currencies and commodities. The US dollar strengthened as a traditional safe haven, while gold, typically a refuge during geopolitical stress, unexpectedly declined. This unusual move signalled that capital was not rotating into traditional hedges but instead retreating broadly from speculative exposure. Notably, Indian markets bucked the regional trend. The Sensex closed at 82,566.37 and the Nifty at 25,418.90, lifted by domestic optimism ahead of the Union Budget. India’s relative insulation highlighted how localised fiscal expectations can temporarily override global headwinds.
Meanwhile, the cryptocurrency market experienced a sharp contraction, shedding 6.82 per cent in 24 hours to settle at a $2.78 trillion valuation. This decline did not stem from internal protocol failures or regulatory crackdowns but from a cascading geopolitical risk-off event. Specifically, President Trump’s explicit threat of military strikes against Iran triggered a broad flight from all assets perceived as risky.
In this environment, crypto behaved not as a decentralised hedge but as a correlated risk asset, moving in near lockstep with equities and commodities. The correlation between crypto and gold reached an unusually high 88 per cent, confirming that macro forces, not blockchain fundamentals, were driving price action.
The primary catalyst was clear. Escalating US-Iran tensions injected acute uncertainty into financial markets. Investors, fearing broader conflict and potential oil supply disruptions, reduced exposure across the board. Crypto, despite its narrative as a non-sovereign store of value, proved vulnerable to the same macro fears affecting traditional markets. This moment laid bare a critical reality. In times of acute geopolitical stress, crypto still trades as part of the risk spectrum rather than outside it.
Compounding the sell-off was a violent unwinding of leverage. Over US$363 million in Bitcoin long positions were liquidated within 24 hours, a 175 per cent increase from baseline levels. This forced selling created a negative feedback loop. Falling prices triggered more margin calls, which accelerated the decline further.
Market sentiment deteriorated rapidly, with the 

Fear and Greed Index plunging to 28, deep into fear territory. Funding rates turned negative, averaging -0.00215 per cent, indicating that short sellers now dominated the derivatives market and were effectively being paid to maintain bearish positions. Open interest stood at US$608 billion, but its stability remained precarious as longs continued to exit.
Looking ahead, the market faces a pivotal juncture. Technically, the US$2.79 trillion level serves as a crucial support pivot. Holding this zone could allow for stabilisation if geopolitical tensions ease. A decisive break below opens the path toward the yearly low of US$2.42 trillion, particularly if institutional demand continues to wane. Bitcoin ETF flows on January 30 will offer a telling signal. Sustained outflows would confirm that even large players are adopting a defensive stance, reinforcing downward pressure.
This episode underscores a recurring theme in crypto’s maturation. Its increasing integration into the global macro framework means it no longer operates in a vacuum. Instead, it responds to the same geopolitical tremors, monetary policy shifts, and risk sentiment swings that govern equities and commodities. The notion of crypto as a crisis hedge remains aspirational unless it can decouple during true black-swan events, a test it has yet to pass convincingly.
Moreover, the role of leverage cannot be overstated. The US$363 million liquidation wave reveals how fragile market structure can amplify external shocks. While decentralisation promises resilience, the reality is that centralised exchanges, derivative platforms, and leveraged traders create systemic vulnerabilities that mirror traditional finance. Until these structural imbalances are addressed, crypto will remain susceptible to cascading sell-offs driven by macro panic.
In conclusion, January 30, 2026, marked another chapter in crypto’s evolution from fringe experiment to integrated financial asset, one that shares the burdens and behaviours of the broader market. The path forward hinges not on code or consensus alone, but on the unpredictable currents of global politics and investor psychology.
Whether this moment becomes a temporary dip or the start of a deeper correction depends on de-escalation, institutional resolve, and the market’s ability to hold its psychological and technical supports. Until then, crypto remains tethered to the world it once sought to transcend.

 

Source: https://e27.co/fear-and-greed-at-28-why-traders-are-fleeing-crypto-right-now-20260130/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j