Bitcoin's Price Crashed 87% On Binance.US Thanks To a Bug (vice.com) 21
An anonymous reader quotes a report from Motherboard: Bitcoin is on a tear, reaching an all time high price of $67,000 for 1 BTC on Wednesday, buoyed by a series of approvals for Bitcoin futures funds on the stock market. But on one major U.S. exchange, the price flash-crashed 87 percent to roughly $8,200 on Thursday due to a bug in a trading algorithm. The crash occurred during a massive sell-off on the Binance.US exchange that occurred around 7:42 a.m. ET, Bloomberg reported. Binance is the largest cryptocurrency exchange in the world, and its Binance.US exchange is meant to be compliant with U.S. regulations, although it is still banned in several states.
According to a Binance.US spokesperson, the crash was due to an issue with a trading algorithm being run by one "institutional trader," which may indicate an investment fund of some sort. "One of our institutional traders indicated to us that they had a bug in their trading algorithm, which appears to have caused the sell-off," Binance.US told Bloomberg. "We are continuing to look into the event, but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved." It's entirely possible that some lucky traders were at the right place at the right time and managed to snap up some incredibly cheap BTC, but mostly it's yet another example of weirdness along the edges of the crypto ecosystem.
According to a Binance.US spokesperson, the crash was due to an issue with a trading algorithm being run by one "institutional trader," which may indicate an investment fund of some sort. "One of our institutional traders indicated to us that they had a bug in their trading algorithm, which appears to have caused the sell-off," Binance.US told Bloomberg. "We are continuing to look into the event, but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved." It's entirely possible that some lucky traders were at the right place at the right time and managed to snap up some incredibly cheap BTC, but mostly it's yet another example of weirdness along the edges of the crypto ecosystem.
Re: Slow News Day?(*) (Score:1)
It was $55k a month ago and you said the same thing about it scraping back down from $60k. You said the same a few months ago around $45k and $30k all the way down to $5.
In other news, my energy investment appreciates by 500% hourly!
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Look, as much as I revel at trashing bitcoin and its bros, this isn't even a fucking story.
Gotta keep Bitcoin in the headlines. Bitcoin will crash and burn without constant headlines.
Accustomed yet much? (Score:2)
No I won't. ever, invest in crypto.
I'll rather stay poor, drinking wine, eating meat whenever I want, like a king of the old ages. But then everyone around me too.
Anyway.
cheers.
The point I realized how crazy crypto is (Score:2)
Tether coins are created and used primarily to buy other Crypto currencies. They're a means of quickly getting into crypto, and were supposed to be a secure way to do so.
It's just be revealed that they're more or less a pyramid scheme, where coins are minted without backing and where the whole thing could, like any other crypto currency, crash at any moment. This was suspected, but they just settled with t
So a single institutional investor (Score:3, Interesting)
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No. A single institutional investor can crash the price of Bitcoin on a single exchange which isn't even the largest exchange in its own country.
Re: So a single institutional investor (Score:1)
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Not really different than the Citibank accident (Score:5, Informative)
“Money Stuff: Citi Can’t Have Its $900 Million Back” - https://www.bloomberg.com/news... [bloomberg.com]
It was an accident and the investor is out of luck. A bunch of traders had limit orders in place at the lower price points “just in case” and the investor’s “algorithm” issued market sell order that cleared the order book on the exchange. The bug was in the client’s code. This was on one exchange and had minimal impact on the larger bitcoin market.
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Playing with fire (Score:1)
That trader should've known better than to play with a volatile substance on fire!
Dunno if I'd call it a bug (Score:3)
Unless you consider an outbreak of common sense to be a bug?
Not surprised (Score:2)
I was being kind of facetious... (Score:2)
When in the previous Bitcoin story I posted "I have a pretty good idea of what the USD will be worth at the end of the year, but no idea what Bitcoin will be worth tomorrow"... *facepalm*
bullshit (Score:2)
secondly, all minor exchanges (like binance, bitstamp, bitmex etc.) have been losing customers to the fastly rising since two years FTX, leaving them with very few users and very low liquidity. And that is the reason of the flash crash, not some cheap excuse like "a trading algorithm bug". the "trading algorithm bug" was that someone fat fingered sold a lot of btc, that is not a b
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This wasn't the real Binance. This was Binance.us, the very small exchange with minimal liquidity that US users are forced to use.