The bitcoin (BTC) market in recent days has brought joy to its investors after reaching a new all-time high of almost $ 67,000.
However, not everything was rosy for some, when the price of the cryptocurrency surprisingly plummeted to $ 8,200 for a minute on the exchange Binance.US, which is the name of the branch of the exchange in the United States.
Apparently it was the market phenomenon known as flash crash or lightning strike. It is a very fast, deep and volatile fall in the price of an asset or security in a very short period of time.
The fact was registered in the morning hours today, October 21, in the BTC / USD pair trading. The phenomenon made the cryptocurrency will collapse by 87%, with a trading volume of 592 BTC, although the price quickly normalized.
Although, from the exchange, they have not reported anything in their networks about what happened, the journalist Colin Wu, Indian that a software glitch occurred in the platform’s trading algorithm. This caused the price of BTC to drop.
The exchange is investigating whether it was a technical problem or a malfunction, according to Wu.
An advantage of Binance.US is that, by not offering leveraged positions, avoided losses to users in the face of the steep decline in BTC. Having allowed leverage, many open positions in long they would have been liquidated.
A statement from the CEO of Binance and its consequences
For his part, Binance CEO Changpeng Zhao only wrote on Twitter: “Expect very high volatility in cryptocurrencies over the next few months.” Zhao’s statement brought with it a wave of messages on the social network, demanding answers about what had happened on Binance.US.
It should be noted that, although they share the same name, under the law, Binance and Binance.US are different companies.
One of those thousands of messages wrote Michaël van de Poppe, who said sarcastically ‘I see, I didn’t know that a flash crash a $ 8K».
Another user named AndyTrades asked for explanations about. No, seriously, how does that happen? There must be pressure to get an answer.
Similar situations have happened before on other exchange platforms. In the case of the Kraken exchange house, in 2020, there was a sudden drop in BTC for a time of five minutes.
In percentage terms the fall in Kraken represented around -99% of the value of bitcoin at the time of the event, fact reported by CryptoNoticias.
Despite what happened with Binance.US, a report by Ecoinometrics, collected by this medium, ensures that the price of the leading cryptocurrency will continue to rise.