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Tuesday, April 23, 2024

Bitcoin crashes to $ 8,200 – what was going on, Binance?

Violent price fluctuations are the order of the day in the highly volatile crypto market. Such a Bitcoin slump has probably never happened in history.

At the US offshoot of the crypto exchange Binance , there was a brief but even more severe slump in the Bitcoin price in yesterday’s trading . At around 11:34 a.m. (UTC), Bitcoin fell sharply from $ 65,760 to $ 8,200 – an 87 percent drop. A minute later the spectacle was over again. Bitcoin was suddenly back near its all-time high. The “fog candle” in the minute chart left an unusual picture in the course of the course. (Also Read: Ripple Watches as former partner changes allegiance)

There were also similar, if not quite as severe, price corrections and irregularities in the order book on other exchanges. At Kraken, Bitcoin has now dropped to $ 54,000. At FTX, too, BTC slipped straight away, but settled at USD 58,500.

Compared to Coindesk , a Binance spokesman attributed the flash crash, i.e. the equally fast downward and upward movement, to an error in the trading algorithm of an institutional trader.

One of our institutional traders advised us that he had a bug in his trading algorithm that could have caused the sell-off reported this morning. We are investigating the incident further, but we know from the dealer that they have now fixed their bug and that the problem appears to be resolved.

tweet recently published by Binance boss Changpeng “CZ” Zhao gets an ironic aftertaste in view of the price turbulence. The exchange boss advised his followers to expect “very high volatility in the crypto market in the next few months”.

Bitcoin leaves feathers

Despite the short outlier, CZ is likely to be right with this assessment. The first profit-taking after the high-altitude frenzy of the past few days left moderate price drops in the crypto market. Bitcoin is down three percent on a daily basis. At the time of going to press, the key cryptocurrency is trading at $ 62,861, 6.5 percent below yesterday’s record high.

Ethereum (ETH) buckles by 0.8 percent, Binance Coin (BNB), Cardano (ADA) and Dogecoin (DOGE) each lose around two percentage points. Of the ten largest crypto currencies, however, XRP posted the largest minus at 3.3 percent.

On the winning side are Polkadot (DOT), who is almost four percent up, and Solana (SOL). The cryptocurrency is well on the way to breaking the all-time high it reached a month ago. With a daily plus of eleven percent, the SOL course screwed up to 202 US dollars, only five percent away from the record level.

Solana in a frenzy

The booming dApp ecosystem on Solana ensures a constant upswing. With a total value locked of over 12 billion US dollars, the high-speed blockchain Solana recently reached a new record high. After Ethereum and the Binance Smart Chain, Solana is the third largest network for decentralized applications. In addition, the crypto exchange FTX announced the establishment of an NFT marketplace on Solana last week. 

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