Cryptocurrency News

Bitcoin Price Suddenly Crashed 87% on Binance due to Bug in Trading Algorithm

Binance is the largest cryptocurrency exchange in the world at the moment. Despite facing regulatory backlash from several central governments, Binance has managed to keep soaring and retain its position as the market leader in the field of crypto trading and exchange. However, the company recently went through a small hiccup about the largest cryptocurrency in the world.

The incident was noticed and reported by Cointelegraph. The crypto market reporter pointed out a candle for Bitcoin on Binance where the price of the flagship crypto was posted as low as 8000 USD. This incident took place in the ongoing week. This drastic fall in the Bitcoin prices was only live for about one minute after it was changed and corrected.

Due to the increasing popularity of cryptocurrencies, many people have proceeded to invest a lot of stake into the options like Bitcoin. However, many financial experts have warned people to prevent them from putting all their stakes into one basket. When the mishap from Binance happened, the global crypto community treated it as a major scare.

Possibility of High Volatility

The CEO and founder of Binance posted on Twitter that the possibility of high volatility in Bitcoin and other cryptocurrencies should not be ruled out. There are many platforms like Robinhood and Coinbase that are considering the option to offer debt for the investors who want to get started with crypto trading. Speaking to Business Insider, Binance management claimed that the price fluctuation happened due to a glitch in the algorithm.

When it comes to the stock market, it is possible to determine the price of a stock with the help of existing indices like the price-to-earnings ratio. However, as noted by CNBC financial experts, it is virtually impossible to determine the correct market value of Bitcoin due to the absence of any proper revenue measurement.

Different exchange platforms predict the price of the flagship crypto differently due to the limitation of supply from big to smaller distributors. Most exchanges take market speculation and sentiment as the contributing factors for pricing these digital assets. In the current week, Bitcoin prices have moved from $50K to $67K and fall back to $63K at press time.

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