Bitcoin flash crashes across exchanges
The price rally of Ethereum was also briefly curtailed as the asset lost as much as 50 percent of its value in some cases where it was trading for $2000 after it had breached the $4k mark.
Interestingly, Changpeng Zhao, the CEO of Binance had earlier tweeted a warning to crypto traders generally asking them to “Expect very high volatility in crypto over the next few months.” Shortly after his tweet, Binance US saw the flash price crash.
Binance explains why
Speaking on why this occurred on its exchange, Binance US in an email to Bloomberg, revealed that the flash crash was caused by a bug on one of its institutional trader algorithms. While the identity of this trader remained bogus, the crypto exchange continued that the bug had now been fixed.
“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. 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 email reads.
As of press time, it is not yet known if any of the exchanges suffered any losses for the brief drop in prices of the assets.
The post Binance US explains why Bitcoin fell to $8,200 on its exchange yesterday appeared first on CryptoSlate.