Bitcoin (BTC) price flash crashes to $ 8,200 on Binance US crypto exchange
The cryptocurrency market woke up in shock early in Thursday morning. On the U.S. cryptocurrency exchange Binance, the value of Bitcoin (BTC) fell nearly 87% in value, settling at around $ 8,200. The problem causing the spike in value would have been corrected quickly and the Bitcoin value returned to normal levels within minutes.
Despite the huge change in value on the US Binance exchange, the value of Bitcoin on other exchanges has remained stable. There has been speculation about the exact cause of the spike, although Binance offered a brief statement to Bloomberg explaining that one of its institutional traders was responsible.
“One of our institutional traders told us he had a bug in his trading algorithm, which appears to have caused the sell-off,” Binance.US said in the statement. “We are continuing to investigate the event, but understand from the trader that he has now fixed his bug and the issue appears to have been resolved.”
Such volatility in the crypto markets is nothing new. With no formal structure and countless competing exchanges, digital currency trading is still akin to settling in the old American West. Earlier this month, the decentralized financial platform Synthetify was forced to stop all trading due to a bug in the platform that provides price data. The same software responsible for Synthetify’s problems was also blamed for a Bitcoin crash in September.
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