Binance.US Names Real Reason Behind 87 Percent Bitcoin Flash Crash

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Alex Dovbnya

Here’s why Bitcoin plunged to the $8,200 level on Binance.US earlier today

Binance.US has commented on the reason behind extreme volatility that occurred on the exchange earlier today, claiming that the price drop was attributed to a vulnerability in the trading algorithm of one of its institutional clients:       

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.

The exchange’s spokesperson told Bloomberg that the issue has now been resolved.

As reported by U.Today, the largest cryptocurrency collapsed 87% to hit the $8,200 level.

There was some speculation that the accident was a low-liquidity flash crash, meaning that it wasn’t caused by a bug. 

After hitting a new all-time high above $67,000 on Wednesday, the Bitcoin price has taken a bearish turn, shedding more than 5%.

At press time, its price is sitting below the $63,000 level on major spot exchanges.

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