Binance U.S. Bitcoin price plummets 87% to $8,000

Bitcoin (Bitcoin) Fell to $8,100 on October 21st-but only if you trade on Binance’s U.S. dedicated exchange Binance U.S.

On Thursday, Binance USA suddenly printed a One minute candle This caused BTC/USD to fall from $65,815 to $8,200-a decrease of 87%.

“Should not happen”

In what traders call a “scam”, the one-minute BTC/USD is very different from other major transactions. Other major exchanges recorded a one-minute candle with a bottom of approximately $64,200.

In recent days, this phenomenon has occurred more frequently, and Bitstamp has also experienced abnormal order events.

However, the scope of Binance America’s errors is in its own alliance and has not been ignored by market participants.

“Good job, Binance America”, popular Twitter trader Crypto Chase Summarize.

“The good news is that Americans are forced to trade in these shit, where they can be completely deceived by unreasonable thin books. This shit shouldn’t happen. Some people are blocked, some people stay in it, some people are filled in. Full, it’s unfair. Some don’t.”

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

Crypto Chase mentioned the impact of sudden and unstable price fluctuations on exchanges, which are used to clear traders who should have held positions.

The collapse was ironic and coincided with Binance CEO Changpeng Zhao (CZ) warning of the impending volatility.

“It is expected that the volatility of cryptocurrencies will be very high in the coming months,” he said Tweet That day.

Leverage is established in an overly long market

At the same time, Thursday’s concerns have also intensified that leveraged traders are taking risks beyond their capacity.

related: Bitcoin futures ETF reaches $1B AUM in record two days

Observations of cross-exchange funding rates suggest excessive optimism and traders are long BTC a lot of — Modified classic indicators.

Within a few hours after BTC/USD broke the recent all-time high and continued to reach $67,100, the funding rate rose significantly.

Bitcoin financing rate chart. Source: Bybt