On October 21, Bitcoin (BTC) dropped to $8,100, but only if you trade on the US-based specialized Binance platform, Binance.US.
On October 21, Binance.US unexpectedly hit a 1-minute candlestick that took BTC/USD up from $65,815 to $8,200 — a drop of 87%.
“This should not happen.”
In what traders are calling a “scam,” the 1-minute BTC/USD was in stark contrast to other major exchanges, which recorded 1-minute candles with a floor around $64,200.
This phenomenon has happened quite a lot in recent days, and Bitstamp has also seen strange occurrences in the order book.
However, the magnitude of the Binance.US error was special and did not go unnoticed by market participants.
“Great job, Binance US,” famous Twitter trader Crypto Chase summed up.
“It is so good that Americans are being made to do this doggy thing, that they can be totally fooled by needlessly thin books. This kind of nonsense should not happen. It is unfair that some stop and some stay, some are full and some not.”
BTC/USD (Binance) Japanese candlestick chart. Source: TradingView
Crypto Chase mentioned the repercussions of sudden volatile price movements on exchanges that wipe out traders who should have held their positions.
The irony sparked outrage at the failure when Binance Chairman Changpeng Zhao, aka CZ, warned of the impending volatility.
“Expect very high volatility in cryptocurrencies over the next few months,” he tweeted on October 21.
Leverage is increasing in a far away market
Meanwhile, on October 21, there were growing concerns that traders were risking more than they imagined.
On the topic: Bitcoin futures ETF reaches $1 billion in two record days
A look at fundraising rates on exchanges suggests over-optimism as traders open broadly long positions in BTC – a classic indicator of a correction.
Funding rates rose significantly in the hours since the BTC/USD pair recently peaked at $67,100.