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Binance.US Names Real Reason Behind 87 Percent Bitcoin Flash Crash

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Thu, 10/21/2021 - 18:20
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Alex Dovbnya
Here's why Bitcoin plunged to the $8,200 level on Binance.US earlier today
Binance.US Names Real Reason Behind 87 Percent Bitcoin Flash Crash
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Binance.US has commented on the reason behind extreme volatility that occurred on the exchange earlier today, claiming that the price drop was attributed to a vulnerability in the trading algorithm of one of its institutional clients:       

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.

The exchange’s spokesperson told Bloomberg that the issue has now been resolved.

As reported by U.Today, the largest cryptocurrency collapsed 87% to hit the $8,200 level.

There was some speculation that the accident was a low-liquidity flash crash, meaning that it wasn't caused by a bug. 

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After hitting a new all-time high above $67,000 on Wednesday, the Bitcoin price has taken a bearish turn, shedding more than 5%.

At press time, its price is sitting below the $63,000 level on major spot exchanges.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.