Bitcoin price crashes 87% to USD 8,000 on Binance.US

Bitcoin (BTC) plunged to just $ 8,100 on October 21 – But only if you have traded on Binance’s exclusive US exchange, Binance.US.

On October 21st, Binance.US suddenly printed a one-minute candle that took the BTC / USD pair from $ 65,815 to $ 8,200, an 87% drop.

“It shouldn’t happen”

In what traders refer to as a “scam wick”, the one-minute BTC / USD pair was dramatically different from other major exchanges, which posted a one-minute candle hitting a low of around $ 64,200.

Bitcoin price crashes 87% to USD 8,000 on Binance.US
Bitcoin price crashes 87% to USD 8,000 on Binance.US

The phenomenon has become more frequent in the last few days and Bitstamp has also seen strange events in the order book.

Nevertheless, The extent of the Binance.US bug was in a league of its own and was not hidden from market participants.

“Well done Binance US”, summarized the popular Twitter retailer Crypto Chase.

“It’s good that Americans are forced to go to these shitty exchanges where they can be completely betrayed with inappropriately thin books. That kind of shit just shouldn’t be happening. It’s not fair for some to be taken out of the game and some to stay in, some to get fills and some not to. “

BTC / USD (Binance) 1-hour candlestick chart. Source: TradingView

Crypto Chase looked at the impact of sudden and erratic price movements on the exchanges designed to liquidate traders who should have held their positions.

The debacle was ironic, and it came when Binance CEO Changpeng Zhao, also known as CZ, warned of impending volatility.

“Expect very high volatility in cryptocurrencies in the coming months”, tweeted October 21.

In a market that is too long, leverage accumulates

In the meantime, Concerns also rose on October 21 that leveraged traders were taking more risks than they can take.

A look at the financing prices on the stock exchanges indicates excessive optimism, as traders are betting en masse on BTC, a classic indicator of a correction.

Funding rates rose significantly in the hours after the BTC / USD pair hit its recent all-time high of $ 67,100.

Bitcoin Funding Rate Chart. Source: Bybt

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