Binance sent huge amount of ETH to Wintermute just as price surged

Crypto exchange Binance transferred multiple ETH assets as the token surges above $4000. Arkham Intelligence said the exchange’s Binance executed ETH transfers to Wintermute within hours of the token’s price surge.

Binance initially sent the tokens in batches of 250 to 500 ETH, then moved over 1,800 ETH per transfer. Certain transfers surpassed 3,000 ETH—valued at $12 million—while one significant movement totaled 8,000 ETH in a four-hour window.

The transactions came shortly after key Ethereum ecosystem updates, notably SharpLink’s $200 million fundraising effort to push its ETH treasury beyond $2 billion.

Binance moved tokens across multiple Wintermute-linked addresses

Binance dispersed the tokens to multiple Wintermute-linked destinations, including Bybit, Kraken, Gate, and in-house market-making wallets. Collectively, transfers crossed tens of thousands of ETH within seven hours. The exchange started making the transfers just when ETH’s price began to climb from around $3,800 to above $4,055—its highest in months. However, the bullish momentum slowed slightly after the outflows began. 

Such ETH transfers from exchange wallets to market-making accounts are often considered a precursor to major trades. Analysts have argued that Ethereum’s gains above $4,000 may be short-lived if selling continues. However, the price strength might hold if the outflows are largely aimed at market liquidity.

So far, market experts have attributed the transfers to a spike in ETH volatility, resulting in $188.7 million in liquidations and a retracement despite the $4,000 support holding. 

Meanwhile, Ethereum is trading at $4,245 at the time of writing, making a 7% rise in the last 24 hours. Its 24-hour trading volume is close to reaching $42 billion. Nonetheless, the sessions ahead will test whether the $4,000 price level becomes a lasting support or a momentary summit.

Some analysts have suggested that short-term price pressure could follow, should ETH, moved by Binance, be positioned for active selling. If, instead, the funds are allocated for liquidity provision or arbitrage, the price impact may be minimal or even positive. 

Wintermute has been tied to other ETH transfers 

Historically, Wintermute has been associated with major Ethereum acquisitions through over-the-counter platforms such as Galaxy and FalconX. However, its precise involvement in the transfers has never been revealed. Even Binance has yet to give an official statement on its ETH transactions to the market maker.

The recent transfers, however, have raised concerns over the platform’s transparency and liquidity management practices. Some analysts have hinted that such transactional activity may lead to heightened volatility and repricing, especially for governance tokens and other liquid assets. Besides, the latest unreported 82,500 SOL transfer to Wintermute has only worked to intensify those concerns.

Just recently, Wintermute started expanding its operations in the US, moving away from its predominant focus on Asian markets.  At the time, CEO Evgeny Gaevoy even remarked, “Now we have a new focus on the US,”  hoping that more pro-crypto policies would be implemented.

It opened a New York office and announced plans to introduce over-the-counter products to the American market. However, it intends to employ only a few personnel at its NY headquarters.

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