Binance US reveals why Bitcoin dropped to $8,200 yesterday on its platform

As the price of Bitcoin rapidly collapsed on Binance’s U.S. exchange, the company’s CEO cautioned crypto traders of “market volatility.”

The price of Bitcoin temporarily fell below $10,000 on Binance US yesterday, which was an unexpected development.

Bitcoin exchanges have seen a series of flash collapses

While the error was swiftly fixed, it significantly impacted other exchanges, with BTC’s value dropping to roughly $54,000 on Kraken and around $1000 on Coinbase.

Ethereum’s price climb was also abruptly halted, with the asset losing up to 50% of its value in certain situations, with the asset selling for $2000 after breaching the $4k barrier.

Interestingly, Binance CEO Changpeng Zhao had previously warned crypto traders, saying, “Expect extremely significant volatility in crypto over the next several months.” Binance US had a price fall shortly following his post.

Binance explains the reason behind this

In an email to Bloomberg, Binance US said that the flash collapse was triggered by a problem in its institutional trader algorithms. While the trader’s identity remained a mystery, the crypto exchange insisted that the flaw had been resolved.

As of press time, it was unknown if any of the exchanges had sustained any losses due to the temporary decline in asset values.

You may recall that when the first crypto-based exchange-traded fund (ETF) was listed in the United States, the price of Bitcoin reached $67,000.

Some observers have linked the digital asset’s price increase to the Proshares ETF’s historic NYSE launch. Several crypto-related ETFs, in particular, are likely to launch soon.

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