Bitcoin flash crashed on Binance as the price of the coin on the exchange went from $60,000 to $8000 thanks to an algorithm bug as we are reading more in our latest Bitcoin news today.
After reaching an all-time high, the price of BTC got down by 5.5% in the past day but the traders on Binance US were shocked to see that Bitcoin flash crashed on the platform to $8000. The US branch of the exchange says the flash crash was caused by an error in the trading algorithm. The exchange spokesperson said:
“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.”
Flash crashes are not something new to the world of crypto which is reliant on computerized trading which means that something unusual happens on the trading day it can cause the algorithm to sell a huge chunk of the asset. The New York Stock exchange uses circuit breakers to make the trading even harder in the event of a sudden drop in price. The flash crash happened on Binance and sent the price of BTC down by almost 90% when traded with the StableUSD coin. The trading pair had the opposite flash earlier this year which caused the asset to go from $5000 to $11,000 and other exchanges also experienced it as well. All of this can negatively impact the users that set up stop-loss orders to sell if the price drops below the specified amount. For an update make sure to check the Bitcoin calculator on our site.
As recently reported, The new Bitcoin futures exchange-traded fund will start trading on Wall Street next week as per the SEC filing, and the New York-based asset management company VanEck’s Bitcoin Strategy ETF will go live after October 23 filing noted. Trading the VanEck ETF will start as soon as practicable after the effective date. The first Bitcoin ETF in the US has launched a day ago and it became quite popular. ProShares BTC ETF traded $280 million worth of shares in about 30 minutes and by the end of the trading day, about $1 billion had been traded. So now, the SEC approves VanEcks Bitcoin futures ETF in the wave of green lights.
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