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Bitcoin price crashed to near $8k on Binance US platform

www.thecoinrepublic.com 22 October 2021 01:17, UTC
Reading time: ~3 m

  • Bitcoin price on Binance US platform faces a notable dip of more than 87%
  • Within a minute, BTC/USD chart on Binance US plunged from near its ATH to about $8k
  • Market participants criticizing such errors caused by unreasonable thin books, as it liquidates traders
  • Binance CEO warns its clients that the traders would face heavy volatility over the next few months

Bitcoin price has gained its bullish momentum after several bearish months. This week, the digital currency has achieved a new all-time high near the price level of $66k. However, after such tremendous gains, the traders on the platform of Binance US had to face a severe crash as the price crashed from its near high levels to $8k within just a minute. Indeed, the users of Binance US had observed that the price of the flagship crypto coin suddenly printed a more than 87% drop on a one-minute candle.

Bitcoin price error did not go unnoticed

Following the error, experts and traders taking active participation in the market calls a “scam wick” scenario. It is worth noting that the one minute BTC/USD chart on the platform differed dramatically in comparison to other exchanges. Indeed, the chart logged a one minute candle with a floor of near $64k.

Source: TradingView

Over the past few weeks such a phenomenon seems common, as such scenarios have occurred more frequently. Notably, Bitstamp, one of the leading crypto assets exchanges has also witnessed such freaking order-book events. However, it is clear that the recent error of Binance US was in a league of its own, and has been noticed by every market participant.

Traders can get scammed on thin books

Following the errors that occurred related to Bitcoin price on the Binance US platform, Crypto Chase, sarcastically tweeted appreciating the exchange. According to Crypto Chase, it is noteworthy that Americans are forced on to such exchanges where they get completely scammed on unreasonably thin books. Additionally, the Twitter user criticized that such things shouldn’t be happening, as it is completely unfair, that some are being stopped out, and some stay in.

Critical errors liquidating some traders

Following such a scenario on Binance US, Crypto Chase noted some of the implications of sudden erratic price behaviour. Ultimately, such errors liquidated traders who should have retained their positions in the crypto market. 

Moreover, Binance CEO, Chnagpeng Zhao, also warned its users regarding Bitcoin price volatility. According to Zhao, very high volatility in the cryptocurrency market can be observed over the next few months. Indeed, the cryptocurrency market is already facing FOMO after the Elon Musk tweet. Analysts have observed that the greed index is too high and the entire market has been overbought.

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