The last 24 hours have been nothing but volatile when it comes to Bitcoin’s price. The cryptocurrency went on a rollercoaster, surging above $12,000, dropping to $10,490, going back up and back down. In short – it’s been a wild few hours.
Most interestingly, however, a user’s algorithm “went ballistic,” according to Changpeng Zhao, seemingly sending the price for the BTC/USD Quarterly Contract on Binance to $100,000.
Bitcoin’s Price Going Crazy
To an outsider, the last few hours might seem like a complete madness on the cryptocurrency markets, but for those who have been here long enough, it’s just another Sunday.
However, an exciting thing happened on Binance. The contract for trading USD-settled Bitcoin quarterly futures, which expires on September 25, this year, saw its rate perform abnormally. Per a chart posted by Changpeng Zhao, the CEO at Binance, himself, the price skyrocketed to $100,000 in a wick.
Another day in crypto. We do have price band protection, but a user’s algo went ballistic and sent multiple orders to achieve this. We will likely have to adjust this chart a bit so that it’s readable in the future. – CZ said.
A Single User Caused It
Shortly after that, Binance issued an official response, explaining that a ‘single user placed a large number of orders over a very short period on the BTCUSD 0925 Quarterly Futures contract, resulting in a large candle wick up to 99,964 USD and a stretch of the K-line chart for all quarterly futures users.”
The exchange stated that because of community feedback and “consideration of future user trading experience,” they will adjust to the K-line of the BTCUSD 0925 quarterly contract at 12 PM UTC today.
On another note, according to the report, the massive volatility also caused some challenges for ETH traders. Apparently, the fluctuations in the ETHUSDT perpetual contract on Binance Futures that took place this morning, the “fair price calculation based on the underlying perpetual position was delayed, then de-synced from the ETHDOWN token.”
This issue has also been resolved. However, users have experienced losses because of that. Hence, Binance officially stated that all users’ losses incurred trading the “ETHDOWN BLVT token between 4:43 AM and 5:22 AM UTC this morning, will be covered by Binance.”