Binance CEO Issues Serious Crypto Price Warning As Sudden Bitcoin ‘Flash Crash’ Hits Ethereum And A Wider Market

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Bitcoin, after hitting all-time highs this week, suddenly plunged nearly 90% on the US leg of the main crypto exchange Binance today, before returning almost immediately.

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The price of bitcoin briefly fell to less than $ 10,000 per bitcoin on Binance.US, down almost 90% from around $ 65,000, and caused the price of bitcoin to drop on other exchanges. The sudden drop also took the breath away on the rise in ethereum prices.

The Bitcoin flash crash, blamed on the dishonest algorithm of an institutional trader, came as the Binance CEO warned that crypto traders should watch out for “very high volatility” in the coming months.

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“Expect very high crypto volatility over the next few months,” Binance CEO Changpeng Zhao, often simply known as CZ, said via Twitter shortly before the flash crash of the crypto. Bitcoin price from Binance.US.

The flash crash happened just after 7:30 a.m. New York time, and the price of bitcoin dropped to $ 8,200 on the stock market. The plunge had a ripple effect on other exchanges, with the price of bitcoin losing around $ 1,000 on Coinbase. The price of ethereum also fell, losing some $ 2,000 from its price of just over $ 4,000 per ether. Back then, the volume of bitcoin trading on Binance.US was worth almost $ 40 million.

“One of our institutional traders told us he had a bug in his trading algorithm, which appears to have caused the sell-off,” Binance.US told Bloomberg via email. “We are continuing to investigate the event, but understand from the trader that they have now fixed their bug and the issue appears to have been resolved.”

The price of bitcoin has skyrocketed this week, in part thanks to the listing of the first U.S. bitcoin exchange-traded fund (ETF) on the New York Stock Exchange, with some warnings of an impending sell-off.

The “historic” listing has fueled a wave of bitcoin and crypto hype, with optimistic investors betting that Wall Street money will increasingly flow into the crypto market, even after adding an estimated $ 700 billion. dollars over the past month.

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The price of bitcoin briefly crashed to around $ 8,000 per bitcoin on Binance.US, stalling ethereum … [+] rising prices and taking the breath away from the combined crypto market.

Binance.US

Binance’s CZ is not alone in warning of the prospect of extreme volatility, with the US Federal Reserve warning that it may soon start scaling back its huge stimulus measures from the Covid-19 pandemic.

“I’m a little worried that this wonderful world we live in with low volatility, whatever goes up, may end with higher volatility,” the former Pimco chief executive and advisor told Fox News. Allianz, Mohammed El-Erian. weekend.

“If I were an investor, I would recognize that I was riding a huge wave of liquidity thanks to the Fed, but I would remember that waves tend to break at some point, so I would be very careful,” said El-Erian.

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