Binance US explains why Bitcoin fell to $8,200 on its exchange yesterday | CryptoSlate

CryptoSlate

Yesterday a surprising event occurred on Binance US as the price of Bitcoin briefly crashed to less than $10,000.

Bitcoin flash crashes across exchanges

While this anomaly was quickly corrected, it had a far-reaching effect on other exchanges as Kraken also saw the value of BTC drop to around $54,000, Coinbase saw the price drop by around $1000.

The price rally of Ethereum was also briefly curtailed as the asset lost as much as 50 percent of its value in some cases where it was trading for $2000 after it had breached the $4k mark.

How To Get Free Crypto  

Interestingly, Changpeng Zhao, the CEO of Binance had earlier tweeted a warning to crypto traders generally asking them to “Expect very high volatility in crypto over the next few months.” Shortly after his tweet, Binance US saw the flash price crash.

Binance explains why

Speaking on why this occurred on its exchange, Binance US in an email to Bloomberg, revealed that the flash crash was caused by a bug on one of its institutional trader algorithms. While the identity of this trader remained bogus, the crypto exchange continued that the bug had now been fixed.

“One of our institutional traders indicated to us that they had a bug in their trading algorithm, which appears to have caused the sell-off. We are continuing to look into the event, but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved,” the email reads.

As of press time, it is not yet known if any of the exchanges suffered any losses for the brief drop in prices of the assets.

You may recall that the value of Bitcoin touched as high as $67,000 after the listing of the first crypto-based exchange-traded fund (ETF) in the United States.

Coinbase Banner  

Some analysts have tied the price surge of the digital asset to the historic listing of the Proshares ETF on NYSE. Notably, a number of crypto-related ETFs are expected to go live soon.

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Like what you see? Subscribe for updates.

Go to Source
Author: Oluwapelumi Adejumo


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.