Home News Bitcoin price flash crashes to $8K on Binance.US

Bitcoin price flash crashes to $8K on Binance.US

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The price of Bitcoin (BTC) on Binance.US platform fell by 87% within a minute, to $8,200. Other cryptocurrency exchanges also recorded a drop, but much lower: Kraken – to $54,100; FTX – to $58,500.

Thus, Binance.US unexpectedly printed a one-minute candle on Oct. 21 that dropped BTC/USD from $65,815 to $8,200, a decrease of 87%. What caused such a decline in quotations – an interface error or a real order – nobody knows. Perhaps it was a deliberate transaction with the aiming to manipulate the market. In addition, the trading volume per minute of the collapse was 579 BTC.

The market recovered almost immediately. At the time of writing, the first cryptocurrency is traded on Binance.US near $63,100.

BTC/USD 1-hour candle chart (Binance). Source: TradingView

Criticism towards the company

The incident caused a flurry of criticism towards the company. For example, a popular trader with the nickname Crypto Chase noted that due to the situation, some users lost their positions. Moreover, he stressed that he considers the incident unfair.

At the same time, some, apparently, were able to capitalize on this fall. One of the users noted that he received $32,000 by “placing an order for $10,000 just for the sake of interest.”

Earlier the CEO of the company Changpeng “CZ” Zhao said that he expects “high volatility” in the cryptocurrency market over the “next couple of months.”

Concerns about inflation

Recall that JPMorgan analysts called concerns about inflation the main driver of Bitcoin price growth in the framework of the current rally. And that interest in the newly launched BITO Bitcoin ETF could cool within a week or less.

According to JPMorgan strategists, the BITO debut, which saw the largest ever first-day natural volume for an ETF, is “unlikely to start a new phase of significantly more fresh capital entering Bitcoin.”

However, JPMorgan suggests that the current uptrend is the result of Bitcoin’s revived role as a superior hedge against inflation in the eyes of investors. As gold has failed to react to concerns about rising cost pressures in recent weeks. The team noted that the shift away from gold ETFs and toward Bitcoin funds has been gaining traction since September.

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