On October 21st, 2021, crypto exchange Binance US experienced a Bitcoin flash crash to led BTC’s price to dropped by over 80%. The industry is maturing, but these occurrences reminiscent the times when a crypto flash was business as usual.
A report by Arcane Research deep dives into the event, starting from the time it happened on the aforementioned date at 11:34:17. At this time, as the research firm claims, a “sudden massive selling pressure cleared the order book” on the exchange.
This caused Bitcoin to crash all the way down to $8,200 for a whole 13 seconds. This parenthesis was enough for Binance US to experience a spike in its trading volume with 550 BTC changing hands, as Arcane Research said.
The research firm compared Binance US normal sell volume to that of this event. The former stands at 0.74 BTC in a 4-hour timeframe, “illustrating that this massive sell order (550 BTC) was” extraordinary, Arcane Research said while adding the following:
What caused the crash? A fat finger by someone meaning to place a limit sell order at $82,000? An engine error? A Combination? Binance has stated that it was caused by a bid in the trading algorithm of one of the institutional traders on the exchange.
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Topic: Breaking Down The Bitcoin Binance Flash Crash By The Second (Read 126 times)