Today, the largest cryptocurrency by market cap, Bitcoin, experienced a flash crash as it tanked to the $8,200 price level on Binance U.S exchange from over $65k.
Although the crash was quickly corrected, however, the flash crash meant the price fell from above $65k to the low of $8,200 on the Binance. US., which represents around 88 percent drop in price within seconds.
Twitter handle with the name Satsdart identified this in a tweet saying “Binance US casually wicking down to $8200.”
No one is sure about the cause because it could be different factors, such as deliberate market manipulation or costly mistake (accidentally entering a wrong price or buying a large market order instead of selling their position in blocks).
Not only Binance U.S experienced this, some other exchanges also went through the abnormalities. On Kraken for instance, the asset price dropped to $54,000 level and quickly recovered. At the time, Bitcoin generally dropped, but to a little above $64k.
Shortly after the crash, the price of Bitcoin advanced again to $65,000 before reversing to around $64k. However, Ether price also fell but has managed to recover.
This came a day after the world-class asset set a record hitting a new all-time of $67k although it has since lost some gains.