The price of BTC on the Binance US stock exchange fell to $ 8,000 after this trivial mistake – Cryptomagazine

The stock exchange during yesterday Binance US recorded a strange decline of more than 80%. The price of BTC was trading at $ 8,000 for some time. The reason was supposed to be alleged flash crash.

BTC and flash crash

This is not the first time that the price of a given asset falls by 99% in a few seconds and then returns. Such an error most often occurs in 2 cases. It is either a stock market failure or the fault of one of the traders. The failure of a stock trader is nothing new and special. When someone wants to open a shop, they have to enter an amount on the stock exchange. If someone makes a mistake and adds one extra 0 when buying or selling, then there can be a so-called flash crashu.

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What is a flash crash?

Flash crash occurs when there is not much liquidity on the stock exchange and orders to buy or sell. A big player in the market wants to make a purchase, but they are wrong, for example, by one or more zeros. Then he can buy all orders on the market in a second and send the price of BTC without hesitation to $ 0. The problem is mainly small stock exchanges, where in some cases it is enough to enter a trade for sale for $ 100,000 and suddenly the price will fall. After a trader’s mistake, the price will in most cases return to its original values.

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Flash has most likely become a stock market as well Binance USwhich belongs to the stock market giant Binance. This phenomenon rarely occurs even in the stock market.

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