On Oct. 21, Bitcoin (BTC) fell to $8,100 if you were trading on Binance’s dedicated United States exchange, Binance U.S.
Binance US unexpectedly printed a one-minute candle on Thursday, dropping BTC/USD from $65,815 to $8,200, a drop of 87 percent.
The one-minute BTC/USD candle had a floor of around $64,200, which traders refer to as a “scam wick.” Other major exchanges had a one-minute candle with a floor of around $64,200.
The occurrence has become more common in recent days, with Bitstamp also experiencing unusual order book events.
The magnitude of the Binance U.S. error, on the other hand, was out of this world, and market participants took notice.
“Well done Binance U.S.,” popular Twitter trader Crypto Chase summarized.
“Good thing Americans are forced on to these dogshit exchanges where they can get completely scammed on unreasonably thin books. This type of shit just shouldn’t be happening. It’s not fair that some get stopped out and some stay in, some get fills and some don’t.”
The implications of sudden erratic price movements on exchanges, according to Crypto Chase, serve to liquidate traders who should have kept their positions.
The mishap was ironic in that it occurred shortly after Binance CEO Changpeng Zhao, also known as CZ, issued a warning about impending volatility.
“Expect very high volatility in crypto over the next few months,” he tweeted on the day.
Meanwhile, fears that leveraged traders had taken on more risk than they could handle grew on Thursday.
Excessive optimism was evident in funding rates across exchanges, with traders going long BTC in droves — a classic sign of a correction.
Funding rates had risen significantly in the hours following the recent all-time high of BTC/USD, which reached $67,100.
