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

Here’s Why Bitcoin Dipped To The $ 8,200 Level On Binance.US Earlier Today

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 told us that there was 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.

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

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

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