Ethereum Just Tanked to 2-Month Low as Wintermute Keeps Shorting ETH

Almost $270 million worth of ETH longs were wrecked in the past 24 hours. Although the entire cryptocurrency market is in the red on Thursday morning, some altcoins have taken it worse than others, and the largest of the bunch is among them. ETH just slumped to $2,315 (on Bitstamp), down $200 for the day. This became its lowest price tag since the breakout rally in the middle of August. Wintermute and OI The reasons behind the overall market crash are quite diverse, as reported earlier. They range from the broader crash in Asia, such as KOSPI’s 8% plunge, and the 6% decline in the Nikkei, to macro pressure from the CPI announcement yesterday, and fresh reports that the US may be developing a bigger non-nuclear weapon to target Iran. For ETH, though, there are some isolated reasons. For instance, the open interest skyrocketed yesterday after the slightly higher-than-expected CPI reading. Daan Crypto Traders reported that “a lot of shorts” emerged that “piled into the downside momentum.” Moreover, they were “sitting comfy and steady,” leaving little room for a short squeeze. Separately, one of the largest market makers, Wintermute, continues to build on its short ETH positions. Oncha...