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Sudden Bitcoin Fall Alarms Investors
As we have already seen, Bitcoin is doing it again, recently reaching a new all-time high, hovering around $67,000. Which has excited people who usually buy this currency, mainly those who perform trading and companies that provide Broker services.
Of course, due to the exponential and sudden increase that Bitcoin had, thousands of people ended up buying the currency at the same time. This undoubtedly wreaked havoc on the services of various web intermediaries that work with this cryptocurrency, especially in the BTC / USD trade.
Two days ago an event occurred that alarmed many, within the platform of the famous Binance.US, Bitcoin had an extreme fall of 87% in value. It was a fact that only affected the branch of the exchange house that is located in the United States.
Which means that it did not affect Binance, since, although they have the same name, legally and infrastructurally they are different companies. The key facts of the event are as follows:
It is speculated that the cause of the crash was a trading algorithm that contained an error.
— The event happened in the morning of October 21, 2021.
— The fall was sustained for just one minute.
— Due to the error, Bitcoin plummeted to $8,200.
— After the minute it returned to its usual value range.
— So far no person affected by the event has been registered.
Colin Wu, a journalist specialized in cryptocurrencies, indicated that everything was caused by a failure in the algorithm of the software of this platform. A statement that has not yet been confirmed through the company's social networks, which leaves us with expectation.
We are aware that the exchange is investigating this situation, as they want to determine if it was a malfunction or a technical problem.
The CEO of Binance.US issues his answer and creates controversies
Although we are waiting for a response regarding what happened, we note that there have been some responses. Binance CEO Changpeng Zhao wrote something alarming on Twitter, claiming that the cryptocurrency will experience enormous volatility in the coming months.
The CEO's claims sparked what could be called mass hysteria among Bitcoin lovers. Endless users wrote on the social network demanding answers, everyone is worrying about their finances, and some users do not understand the situation.
This is commonly known as a flash crash, a sudden crash that could have been caused by anything, but only lasts for an instant. It has happened other times in other exchanges, therefore users should not fear, instead they should be vigilant.
Bitcoin has always been the most volatile of all cryptocurrencies, it is something that all of its owners have always taken into account. It is always going to be a risk to invest in these digital currencies, but it is certainly worth investing in BTC, these situations are not to be feared.