Bitcoin Price Crashes 87% to $ 8,000 on Binance.US

The BTC / USD pair suffered an 87% “flash crash” on the Binance platform in the US, causing irritation from traders who criticized the depth of the order book.

Bitcoin (BTC) plummeted to just $ 8,100 on October 21 – but only if you were trading on Binance’s exclusive US exchange, Binance.US.

On October 21, Binance.US suddenly printed a one-minute candle that took the BTC / USD pair from $ 65,815 to $ 8,200, a drop of 87%.

“It shouldn’t be happening”

In what traders call a “scam wick,” the one-minute BTC / USD pair differed dramatically from other major exchanges, which posted a one-minute candle with a bottom around $ 64,200.

The phenomenon has occurred more frequently in recent days, and Bitstamp has also seen strange events in the order book.

However, the scope of the Binance.US bug was in a league of its own and did not go unnoticed by market participants.

“Well done Binance U.S.,” summed up popular Twitter trader Crypto Chase.

“Good thing Americans are forced to these shit exchanges where they can be completely scammed on unreasonably thin books. This kind of sh * t just shouldn’t be happening. It’s not fair that some get taken out of the game and some stay in, some get fills and some don’t. ”Crypto Chase addressed the implications of sudden and erratic price movements on exchanges, which serve to liquidate traders who should. have maintained their positions.

The debacle was tinged with irony, and it came just as Binance CEO Changpeng Zhao, also known as CZ, warned of incoming volatility.

“Expect very high volatility in cryptocurrencies in the coming months,” he tweeted on October 21.

Leverage accumulates in a market that is too long

Meanwhile, concerns also rose on October 21 that leveraged traders have taken more risks than they can take.

A look at funding rates on exchanges suggests excessive optimism, with traders betting en masse on BTC, a classic indicator of a correction.

Funding rates rose significantly in the hours after the BTC / USD pair passed its recent all-time high and hit $ 67,100.

References: es.cointelegraph.com

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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