Highly unstable cryptocurrencies like Bitcoin, Ethereum, and other altcoins can act crazily at any given minute, specifically when turbulence strikes. But what happened this morning on the US branch of Binance, was shocking for even those who have seen flash crashes happen in real time.
The outcome of a huge wick left on the BTCUSD chart was a violent journey to $8,000 where coins were possibly exchanged for costs that are presently 87% lower than where Bitcoin is trading at today. Here is a closer look at what went down, and what might have happened as a result.
Flash Crash On Binance United States Takes BTC Back To $8,200
If you’ve remained in crypto for a long time, opportunities are you’ve heard some scary stories. Other users have lost funds due to hacks, sent funds to the wrong address, or worse. What few ever experience, however, is getting caught up in a flash crash.
We don’t indicate a specific strong selloff, however a “flash crash” that sends out the rate of a possession diving so deep, it can frequently bring them back to near to absolutely no.
While this morning Bitcoin price didn’t fall back to nothing, it did get a digit knocked off its price tag, and about 87% of the value per coin, according to the Binance US BTCUSD price chart.
The flash crash took the expense per BTC back to pre-bull market breakout levels from back in August 2020. It also was roughly an 87% fall from current prices, which was a larger drawdown percentage wise than the bear market from $20,000 to $3,200 at the low.
Bloody Bitcoin Wick Leaves Shock And Awe Behind
The per hour chart listed below is a much better presentation of how outrageous the wick searched lower timeframes as it was occurring. The wick reached as low as around $8,200.
Any lucky Binance US users with a limit order ready to go could have gotten filled during the madness, which also means that some poor pleb could have sold their coins at a cost of $8,200 – significantly lower than the current price per Bitcoin, which just yesterday reached a new all-time high.
In the past, possessions like Chainlink and even Ethereum have flash crashed down to almost absolutely no. Keeping orders ready on an exchange can take advantage of situations like the above. But these rare events aren’t predictable and can strike at any moment.
