Bitcoin Briefly Plummets 87% on Binance’s US Exchange Due to ‘Fat Finger’ Error

The crypto market appears to be running into troubles as of late, after bitcoin was sent tumbling by as much as 87% on Binance’s US exchange, before quickly regaining all losses.

According go Bloomberg, at exactly 7:34am ET Thursday morning, bitcoin crashed from around $65,000 to a low of $8,200, before quickly reverting to its initial position. The sudden phenomenon was only observed on Binance’s US exchange, and despite immediately snapping back to above $65,000, it was enough to dampen momentum and send bitcoin prices 5% lower.

“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,” explained Binance.US in an emailed statement to Bloomberg. “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.”

According to Binance, when the “fat finger” trade occurred, volume sat at around 592.8 bitcoins, which translates to approximately $40 million at current prices. As Bloomberg notes, such phenomenons occasionally occur in financial markets when traders make errors in their trades, such as submitting incorrect order sizes or prices.

Although that is certainly true, the money question is whether or not the ‘fat finger” occurred on purpose, perhaps with the intention of reversing bitcoin’s upwards momentum even at the cost of taking on an extensive loss.


Information for this briefing was found via Binance and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Nord Precious Metals Identifies 29 Veins At Castle East Following 3D Modeling

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

Related News

Buffett Shuns Bitcoin Anew: “It Isn’t Going To Do Anything”

Speaking at the annual Berkshire Hathaway (NYSE: BRK.A) shareholder meeting, Chairman and CEO Warren Buffett...

Monday, May 2, 2022, 10:14:00 AM

Binance Suspends Euro Bank Deposits From SEPA Network

The ongoing regulatory crackdown against virtual currencies has zeroed in on Binance as of late,...

Wednesday, July 7, 2021, 03:39:00 PM

Michael Saylor Claims There’s “60% Risk-Free Returns” At The Bitcoin Lake

Michael Saylor, executive chairman of MicroStrategy (NASDAQ: MSTR) and one of the most outspoken advocates...

Monday, December 30, 2024, 11:18:00 AM

Binance Halts All USD Transfers As It Searches For New Banking Partner

Crypto exchange Binance is suspending all bank transfers in US dollars beginning on February 8....

Monday, February 6, 2023, 02:59:00 PM

Bitcoin Miners Dramatically Outperformed Bitcoin Over The Last Six Months

Given the explosive performance of Bitcoin over the past six months, and the even more...

Wednesday, January 20, 2021, 11:57:00 AM