The leading cryptocurrency Bitcoin (BTC) achieved an incredible rise in a short time and broke the all-time record. Everyone was surprised when Bitcoin made a sudden drop to the price of $ 8,200 on the day when it broke record after record, consolidation and retreated to the $ 65,000 band.
This event on Binance US, the US subsidiary of Binance, caused the BTC price to be traded at $ 8,200 for about 1 minute. led to While Binance did not initially make a statement on the subject, a company spokesperson made a statement to Bloomberg.
The Reason for Bitcoin’s Fall Explained
As a Binance US spokesperson told Bloomberg, one of the institutional investors experienced a systemic error in the trading algorithm, which resulted in the sale. In other words, although the price seen was actually seen as a result of a systemic error, sales took place.
Bitcoin, which experienced a decrease of 88% in the said minutes, only fell to this level with a volume of 600 BTC. This indicates that the institutional investor in question may have made a large sale, if not 600 BTC.
Although the spokesperson of the exchange stated that the problem is now resolved, it was not disclosed who the institutional investor was. Some users think that this may be due to lack of liquidity, and in fact, heavy sales and lack of liquidity may have caused this.
https://t.co/VQL7TVykRa had a lack-of-liquidity flash crash this morning. $BTC fell to $8200 for 1 min. I explained why on Youtube (not glitch; per confidential source). Good learning experience on exchanges. (PS: Doesn’t affect my bullishness on $BTC; just an exchange failure).
— Meet Kevin Paffrath (@realMeetKevin) October 21, 2021
Despite this, the BTC price on Binance US has returned to its previous level and there has been no change since the event.