Bitcoin’s lightning and colossal fall
On Binance US, the American platform of the giant Binance, the price of Bitcoin (BTC) has just experienced an extraordinary fall.
In seconds, the price of the queen of cryptocurrencies collapsed from nearly $ 66,000 to $ 8,200, a drop of -88%.
This astronomical flash crash would have been caused by a market type order of 575 BTC, which would have almost completely emptied the order book of Binance US.
Binance US casually wicking down to $ 8200 pic.twitter.com/UykFPl5OAc
– satsdart 🔺 (@satsdart) October 21, 2021
A considerable drop in seconds
This is certainly an individual handling error, more commonly known as the “fat finger” syndrome. He would thus have sold with a market order rather than placing a limit type order, which would simply have been added to the order book.
Theoretically, it is quite possible that this is also a transaction intended to manipulate the market. Note that at the same time on other platforms, the price of Bitcoin has also fallen, but in a much less brutal way.
At the time of writing, Binance US has not yet communicated on this incident, but the illiquidity of the platform is probably in question.
👉 On the same topic – Ethereum (ETH) user pays $ 430,000 in network fees for failed transaction
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About the author: Clément Wardzala
Editor-in-chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I have endeavored to share qualitative content so that the sector is democratized among everyone.
All articles by Clément Wardzala.