Bitcoin price flash crashes by 87% to $8K on Binance.US
BTC/USD “crashes” 87% on Binance’s U.S. platform, drawing irritation from traders who criticized order book depth.
“Shouldn’t be happening”
In what traders call a “scam wick,” the one-minute BTC/USD differed dramatically from other major exchanges, which logged a one-minute candle with a floor of around $64,200.
The phenomenon has occurred more frequently in recent days, with Bitstamp also seeing freak order-book events.
The scope of the Binance.US error, however, was in a league of its own and did not go unnoticed by market participants.
“Well done Binance U.S.,” popular Twitter trader Crypto Chase summarized.
Crypto Chase referred to the implications of sudden erratic price movements on exchanges, these serving to liquidate traders who should have retained their positions.
The debacle was tinged with irony, coming just as Binance CEO Changpeng Zhao, also known as CZ, warned about incoming volatility.
“Expect very high volatility in crypto over the next few months,” he tweeted on Oct.
Funding rates increased significantly in the hours after BTC/USD passed its recent all-time high and went on to hit $67,100.