On Thursday, the price of Bitcoin in the American section of Binance (Binance.US) fell 87% and fell below $ 10,000. Bainance officials said the cause was a technical glitch in the trading algorithm of one of the institutional investors.
to the Report Crypto Potito, Bainance has announced that the terrible fall in the value of Bitcoin in the US part of the exchange, which raised the price from $ 65,000 to $ 8,700 in a few seconds, was due to a technical defect in the trading algorithm.
Other major trading platforms, such as CoinBase, Kraken and FTX, experienced a similar situation, with bitcoin prices falling short of their real value in the market of these exchanges for a short time. At Cracken Exchange, the price came in at around $ 54,000, and at Queen Base it was down about $ 1,000.
At some exchanges, including the US division of Bainance and PhotoEx, the price of Ethereum also fell by 50%, and while it had just crossed $ 4,000, it briefly reached close to $ 2,000.
The incident came as Bainance CEO Chang Peng Zhao had previously said on Twitter that he expected the digital currency market to experience “sharp fluctuations” in the coming months.
Although such crashes occur from time to time, the 87% drop in the price of bitcoin in the US segment of Bainance was so bizarre that it caught the attention of many.
Shortly afterwards, Bainance sent a report to Bloomberg explaining the reason for the rapid fall in the price of Bitcoin on its platform.
Pointing out that Thursday’s crash was due to a technical glitch in the trading algorithm, Bainance said:
An institutional trader told us that they had a technical glitch in their trading algorithm, and that this seems to have increased the sales pressure. We are still pursuing this, but as this institutional trader has said, they have now solved the technical problem and apparently the problem has been resolved.
It is unknown at this time what he will do after leaving the post.
The Bitstamp exchange experienced a similar situation a few weeks ago, and a large selling order of 210 bitcoins caused the market price of this exchange to fall by several thousand dollars.
Bitcoin is currently trading in the range of $ 60,940 and the price has dropped 2.54% in the last 24 hours.