Market

Binance ‘Killed Long, Killed Short’ pushed Bitcoin price on Binance US down 87% to $ 8,000

Bitcoin fell to just $ 8,100 on October 21 – but only if you are trading for the US market on Binance US.

On Thursday, Binance US unexpectedly printed a one-minute candle showing BTC / USD crashing from $ 65,815 to $ 8,200 – an 87% drop.

“Shouldn’t happen”

Dubbed the “fraudulent wick” by traders, the one-minute BTC price is vastly different from other major exchanges that list one-minute candles with a minimum price of around $ 64,200.

This phenomenon has been occurring more frequently in the last few days and Bitstamp has also seen strange events in the order book.

However, the extent of Binance US’s error lies only within a certain group and is not noticed by the majority of market participants.

“Nice job Binance Americans are being forced to join these crappy exchanges where they can all be scammed with ridiculously thin order books. Shit like that shouldn’t happen. It’s not fair that some are off the market, others stay, others fill out and others don’t, ”said popular Twitter trader Crypto Chase. sarcasm.

Candlestick chart BTC / USD 1 hour (Binance) | The source: TradingView

Crypto Chase also addresses the consequences of sudden and erratic price fluctuations on the exchanges, leading to liquidations that traders could otherwise have sustained.

Ironically, it happened when Binance CEO Changpeng Zhao warned of impending volatility.

“Waiting for the terrible volatility of cryptocurrencies in the next few months,” he said tweet on this day.

Leverage formed in overlong markets

Meanwhile, on Thursday, many expressed concern that leveraged traders are taking more risk than they can bear.

The financing prices on the exchanges indicate an exaggerated optimism as traders go long BTC – a typical indicator of a correction.

The funding rate rose significantly in the hours after BTC broke recent all-time highs, hitting new highs of $ 67,100.

F.Absurd rate of Bitcoin | The source: Bybt

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Minh Anh

According to Cointelegraph

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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