Transaction error causes Bitcoin to lose 87% of its value on Binance exchange

As Bitcoin’s price surged and surpassed historic highs, a transaction error caused the cryptocurrency’s value to momentarily drop to just $8,200.

On the evening of October 21, Bitcoin was trading at around 65,000 USD. However, on Binance.US, a 1-minute candle appeared to match the price at 8,200 USD, which is more than 87% loss.

However, this error only occurs on Binance.US, Binance’s exchange operating in the US market. In an email explaining the issue, Binance said the error was in the trading algorithm.

Bitcoin price 1

Technical error caused Bitcoin price to be matched at $8,000 at Binance.US. Photo: CoinTelegraph.

“One of the institutional traders informed us that their algorithm had an error, causing the sell-off. We are still investigating the matter, but the trader informed us that they have fixed the bug and the problem. the subject is no more,” Insider lead Binance’s response.

However, this explanation is not agreed by many users. On Twitter, many people take the candlestick body chart, with the candle tail extending to 8,000 USD to mock the exchange Binance. Due to financial regulations in the US, Binance had to build its own exchange for this market.

“Good job Binance US. Americans are forced to use bad exchanges like this, and they can be scammed at any time,” commented Crypto_Chase account.

A spokesman for Binance CEO, Mr. Changpeng Zhao, was also re-mined a few hours ago. As the Bitcoin price surged and broke all-time highs, Zhao wrote on his personal account that “look forward to the huge volatility of the crypto market in the next few months.” Just a few hours later, the error caused the price of Bitcoin on the Binance.US exchange to just over 8,000 USD.

Prices for cryptocurrencies like Bitcoin can vary by exchange. While they can be traded at a common price range, the volatility between exchanges in different countries can be as much as a few percent. Bitcoin prices are usually highest in South Korea, and this feature is even known as the “Kimchi-origin rising price”.

Bitcoin price increased sharply in the past time, and surpassed the historical peak on the evening of October 20 (Vietnam time). After that, the price fluctuated a bit, and at the morning of October 22 around 63,000 USD.

Follow Zing/CoinTelegraph

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