The ever-volatile world of cryptocurrency saw a huge crash on Wednesday. While the price of the seminal crypto token Bitcoin reached a high of $67,000, that high was immediately met with one of the biggest crashes its ever seen.
Reported by Bloomberg, Bitcoin recently saw a massive crash of 87%. The cryptocurrency dropped from $67,000 all the way down to $8,200; its value plummeted by $58,800. But why did this happen?
Why did the price of Bitcoin drop?
Bloomberg revealed that the massive price drop of the cryptocurrency was caused by Binance US. During a massive sell-off, a bug in the algorithm caused the price of the currency to nosedive. The bug was allegedly caused by a single “institutional trader” that may have been investing in the currency.
In a statement to Bloomberg, a Binance spokesperson explained that they are looking into the issue. However, this is just another instance where the unregulated finance platform has messed up in recent months.
The spokesperson said:
“One of our institutional traders indicated to us that they had a bug in their trading algorithm, which appears to have caused the sell-off. We are continuing to look into the event, but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved.”
Read More: NFT art gallery opens to display crap, planet-destroying crypto-art
Cryptocurrency continues to be volatile
The market for cryptocurrency has often been plagued by bugs and sharp drops. Despite its massive highs, there are constantly issues with the platform of decentralised currency. With that said, the crypto market is still booming.
Even after China’s high-profile cryptocurrency ban, the price of Bitcoin continues to rise. While other tokens have failed to stay relevant, the seminal digital currency has stayed strong.
Read More: Jack Dorsey slams Facebook metaverse as a “dystopian corporate dictatorship”
Explore new topics and discover content that's right for you!