Binance CEO Issues Serious Crypto Price Warning As Sudden Bitcoin ‘Flash Crash’ Knocks Ethereum And

Discussion in 'Crypto Assets' started by johnarb, Oct 21, 2021.

  1. johnarb

    johnarb

    https://www.forbes.com/sites/billyb...flash-crash-knocks-ethereum-and-wider-market/

    Binance CEO Issues Serious Crypto Price Warning As Sudden Bitcoin ‘Flash Crash’ Knocks Ethereum And Wider Market

    Bitcoin, after surging to never-before-seen highs this week, suddenly plunged almost 90% on the U.S. arm of major crypto exchange Binance today—before almost immediately snapping back.

    The bitcoin price briefly dropped to under $10,000 per bitcoin on Binance.US, down almost 90% from around $65,000 and knocking the bitcoin price on other exchanges. The sudden plunge also took the wind out of the ethereum price rally.

    Bitcoin's flash crash, blamed on an institutional trader's rogue algorithm, came as Binance's chief executive warned crypto traders should watch out for "very high volatility" in coming months.

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    The bitcoin price has rocketed 50% over the last month, with ethereum adding 40%, propelling the ... [+]

    2018 CHESNOT
    "Expect very high volatility in crypto over the next few months," Binance chief executive Changpeng Zhao, often known simply as CZ, said via Twitter, shortly before the Binance.US bitcoin price flash crash.

    The flash crash happened at just after 7:30am New York time and saw the bitcoin price dip to $8,200 on the exchange. The plunge had a knock-on effect on other exchanges, with the bitcoin price losing around $1,000 on Coinbase. The ethereum price also dropped, losing some $2,000 from its price of just over $4,000 per ether. At the time, bitcoin trading volume on Binance.US was worth almost $40 million.

    "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 via email. "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."

    The bitcoin price has soared this week, in part thanks to the listing of the first U.S. bitcoin futures exchange-traded fund (ETF) on the New York Stock Exchange, with some warning of an imminent sell-off.

    The "historic" listing has fueled a wave of bitcoin and crypto hype, with bullish investors betting Wall Street money will increasingly flow into the crypto market even after it's added around $700 billion during the past month.

     
    Trader Curt likes this.
  2. maxinger

    maxinger

    cryptocurrency investors are not bothered about such news ;
    bitcoin price did not drop.

    History has shown that even if the price drops,
    it will recover easily.
     
  3. RedDuke

    RedDuke

    Sneak peak how it gets manipulated. Wonder how small was the sell volume to cause such drop. What happened to all stops on the exchange?
     
    VicBee likes this.
  4. Overnight

    Overnight

    So, just a glitch in the system, or did you lose your focus for a brief moment and were looking at the woman in the red dress?

     
    johnarb likes this.
  5. johnarb

    johnarb

    people with stop loss orders got rekt

    people with low ball bids who have seen this story before with the flash crashes profited

    was it intentional on that institution or was it an attempt to crash the market? lol

    Crypto peole think the latter
     
    Snarkhund, Trader Curt and VicBee like this.
  6. Overnight

    Overnight

    Well, I do not have a MBT/BTC chart up so cannot see what action may have occurred, just have data the NT analyzer which shows OHLC and volume since the 6PM EDT open. MBT futures are not affected at all at this time, Oct MBT is at 63360. No fuss, no muss.
     
  7. johnarb

    johnarb

    Binance.US problem of low liquidity

    Binance.com would have had no issues, but US regulators protecting investors cannot trade there, lol

    Hence the conspiracy theory of intentional mischief. If done at Coinbase with their history of flash crashes, system would have handled it with no problems
     
  8. Trader Curt

    Trader Curt

    Im sure Binance plays a part in triggering stops for profit, but one of this size would have taken billions of dollars. News is El Salvadors president bought the dip, so who knows what kind of shananagans was going on?

    This just makes me want to take all my lose funds sitting around and put it into a stop loss trap.
     
    horizon, tomas262 and johnarb like this.
  9. mlawson71

    mlawson71

    I cannot imagine how angry Binance's users must be after this shenanigan.
     
    NoahA likes this.
  10. What is volatility? Large fluctuations in the value of cryptocurrencies or any asset.
    What factors cause market volatility? News.
    When these big institutions release any such statements, it is like adding fuel to the fire.
     
    #10     Oct 29, 2021