Topic: Bitcoin flash crashes to $8200 at Binance.us (Read 432 times)

What a lucky and poor guy, the seller and buyer. I think that alone is someone who placed order to sell his bitcoin that lack of zero at the end and entered it badly resulting to that crash for a while. To the person who have bought and saw it quickly, well, it's the sellers fault and there's no responsibility for him to return it but if he's too kind enough then how he's going to return it because many will start to acclaim that they're the one who did the mistake.

Maybe it's just luck, and I'm sure it won't all last, because putting a price below $15K for bitcoin is a price that's not in my analysis anymore. Although I know in crypto anything can happen. The drop from $62k to $8.2k is almost 800%, maybe for those lucky enough to get the low price it's your day. If this isn't purely a Binance Bug, I think bitcoin sellers are too stupid to sell them in one click.

Yes it doesn't matter because it only happens on Binance us. But if we go to the fundamentals then this is bad news. This can make investors panic, so they choose to secure their assets. Regarding this issue, has there been an official announcement from Binance? I doubt if this is purely a bug or if someone sells a large number of bitcoins for under $10k. Today I also observed the price bitcoin, the price seems to be going down since the news.

It just goes to show you that placing a far lower than the market buy order and just parking it there can sometimes reap unexpected rewards.  It also goes to show when someone want to cash out, they will sometimes take whatever they can at that time as they obviously needed the cash more than they needed the crypto.

Only if they are willing to take the risk. Storing money or asset on an exchange is highly discouraged because of the risks. It didn't matter if they wanted to do it after considering the risks.

Anyone lucky enough to get involved in that 1 minute event looks like he's about to throw a big party when he realize that his buy order is filled with discounted bitcoin. This is really a mistake that can frustrate the seller for life after waiting for the best moment of his life for years to get rich with bitcoin but he is selling it at a discount. It is deeply regretted.

the binance.us UI has those warnings. but its API that bots use have different signals.
that said it was the sellers fault so i dont think he would be asking for support. he will just knotch it up to his own stupidity and treat its as a learning experience.. eg we all make mistakes.

as for luck.. well many people that cant be bothered storing coins in cold wallets/private wallets offline. and prefer to use exchanges as their 'bank account'. many of them do just leave their coin as active orders at low numbers. they dont really hope or pretend their orders will ever get filled due to happy accidents. .. but for those that did on the binance.us orderbook that day. they will be very happy they did.
cant say it will ever happen again. and i dont suggest people to leave lots of coin in exchanges for long periods, for the 'hope' of 10x discount accidents.. as it is more likely that a MTGOX 'we lost your coins' is more of a chance of happening instead of profiting

If I remember clearly, Binance warns user if he sets very low sell price and click sell button with a warning message. User must click confirm if he really wants to make a sell order. If this was the situation, then it is 100% seller fault. I am sure that Binance is not the one to blame here. But I am also sure that this seller will try to write letters to support, blame UI and try to get his BTC back.

Suggestion to everyone - make <5k$ buy orders, maybe you will be lucky one day

This flash crash doesn't seem to have any effect on other exchanges, considering it happens frequently on some exchanges, hopefully it's not a sign of a bitcoin price crash, currently bitcoin is going through the 100k price as predicted by many experts, so let's have a look at that at the end of this year

It's a shame that many bitcoins were immediately sold in one go. Binance certainly can't be completely blamed in this case, but because the bitcoin owners themselves were careless by selling out once. Maybe he made a mistake when he entered the sell order. One incident which is certainly very beneficial for the buyer, although on the other hand we also regret what was experienced by the seller.

the institutional trader made a mistake with his bot. so his fault for HIS bot selling HIS coin.
the other people on the exchange, if they are effected, well they are buyers. meaning they got cheap coin at discount.

i dont have the order history (maybe other people in topic can provide that) but most volume/orders are usually 'full' in the first 10% of orderbook so most of the 500+ coins would have sold at $63k->$57k and then a few dozen below that at probably $57k-$37k and a few dozen $37k-$8k. because the volume at the lower orderlines would be low of yeild the further away from the main spread price minutes before the action

in short it didnt sell all coins at $8k. but alot of coins above $60k, and less and less coins as the orders got eating down the price wall. so the loss, averaged out is not as bad as some think..

but for the lucky buyers that did happen to have orders sat at low numbers for the ;just in case' well. lucky for them.

I wonder if there's a refund for this considering that those were from their institutional traders.

On the other note, all exchanges should have a feature to avoid like this user's mistake happens again.

What a pleasant surprise for those who got their orders filled. 

So binance, apparently the biggest exchange in terms of liquidity, had only 600 bitcoins in their order book which made the price drop to below 10,000$. This means that other exchanges will have even less bitcoins on their order book   

Is that a flash dump? Or there is a problem with their server? Whether that is something that we do not know, those people who bought at that price are very lucky because they can now buy a lot of bitcoin at a very big discount on bitcoin. From the image, I guess that is a flash dump from the big whales that sell his bitcoin at once and make the price drops drastically, although that is happening for a short time.

Wow, I didn't notice that, I was just looking at CMC for the price, and since it tells only the average price among exchanges, it did not print the figures.
I guess we have some lucky buyers who bought at a lower price and got their order filled, I never imagine it could happen to bitcoin which has a huge trading volume. Anyway, we are back to normal now.

Wow, I didn't know things like that could happen, to be honest, but it's still no big deal. For one, it lasted for a minute, from what I've read. Also, it was only one exchange (a very popular exchange, but still) and only in one region. Thankfully, it didn't affect the global price situation at all, and even on Binance US it was allegedly due to a bug (so it wasn't even an intentional dump). I think it actually shows that even big dumps don't cause panic and that whale manipulations aren't as easy as some believe them to be. The impact was very brief and local, and overall Bitcoin wasn't hurt by these events.

just goes to show what happens when instead of one central market yielding combined orders that total 1mill coins to defend a price point. but instead there are multiple markets of the same currency pair where many markets only yield a combined orderbook of under 600coin each..

it then doesnt take much to eat through them orders.
just be glad that the arbitrage bots of other exchanges didnt trigger their own mass sell off to match the sudden event on binance US,

its one of the many reasons for bitcoin volatility. many exchanges with many having order lines that just a 0.001 can change the price by over 10cents

yep $60 can manipulate the price by 10cents. meaning a market cap that was:
18.85mill coin X $63,000.10 = $1187551885000
becomes
18.85mill coin X $63,000.10 = $1187550000000

meaning that these WEAK exchanges with WEAK volume and WEAK orderline value and WEAK gaps between price points can change a 'market cap' by $1.8m on a particular exchange, by just a single order of $60 of fiat

and also the other weakness. by having low volume of combined orderbook. can send the price of the exchange into free fall with just a few hundred coins.

..
again for emphasis. this bit of drama could have been far far worse if the arbitrage bots were triggered to sheep follow the crash on other exchanges. causing all exchanges of low volume to crash/dip

Lol, I mean, before seeing this news I would have thought: who is the crazy person who has large purchase orders at $8.5k when the price is around $65k? But I imagine that with this background, orders well below the current price are going to be multiplying.

I remember this happening to ethereum some years ago ($800 down to $200 in a minute then back up) but never to bitcoin to such a low level from $60k to $8k.
Somebody with sticky fingers made the mistake that time but I doubt it was the same for this one.
But your right, the only ones to make anything out of it would be the ones who had a big order for bitcoin at $8200 and got them filled.
Lucky on those binance.us customers to get cheap coins for sure.

Good thing it was a spot market and I don't think Binance.us offer trading derivatives.

However, I feel for the whale who decided to unload that much BTC at once. I mean, who the hell would be happy to sell off their BTC they held at 65K at 8K?

Imagine if you had a long on there that was liquidated, damn. Alternatively there will be some shorters & people who had stink low bids in feeling happy tonight