Some hours into Thursday, Bitcoin suddenly flash crashed to $65,500 to $64,200 across major cryptocurrency trading platforms. Some other exchanges recorded a more severe impact, especially Binance.US, the United States arm of the largest digital currency trading platform.
On Binance.US, Bitcoin tanked over 88 percent from the $65,000 range to around $8,200, and although the price bounced back immediately, it has been slowly declining since the incident. It’s even speculated that the flash crash on Binance.US was why the wide market was severely struck.
What Happened to Binance.US
A Spokesperson for the exchange revealed that the flash crash happened as a result of a bug in one of its client’s trading software. However, the issue has been resolved.
“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 that was reported this morning,” the spokesperson said. “We are continuing to look into the event but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved.”
The incident today was clearly not an exciting one for Bitcoin bulls, especially the long traders. At the time of publication, data shows $206.62 million long positions have been liquidated within the last 24 hours. Bitcoin funding rate has also tanked amid the flash crash, which somewhat indicates that many traders have become fearful of the market.
The State of Bitcoin
Currently, the Bitcoin market is looking lulled. The price is trading at about -5 percent on the 24 hours chart at $62,823 per coin. The market capitalization has also shrunk by 4.1 percent to $1.18 billion.
Zooming out, Bitcoin still seems to be on the bull track. Already, there are announcements of institutions getting into Bitcoin, including several Bitcoin futures ETFs underway. We might see the price back with full momentum again.