The cost of bitcoin in USDT stablecoins on crypto exchange Binance.US, the American division of international Binance, briefly exceeded $138,000 – almost five times the current price of the largest cryptocurrency and twice the price of the all-time high, bitcoin set in November 2021.
The sudden price jump lasted only a few seconds, but in that short time 62.22 bitcoins were sold on the platform. In other words, a certain Binance.US bidder actually executed several orders “luckily” at inflated prices for bitcoins along with bids at current rates and exchanged them for cryptocurrency USDT, priced at $1.
Incidents of this type are referred to as flash crashes (“lightning collapses”) – as the name suggests, they are often not accompanied by an increase but by a decrease in the course. Such a scenario was witnessed on Binance.US in October 2021, when the bitcoin price plummeted 87% for a brief period, depreciating from $65,000 to $8.2,000. The platform administration then linked the incident to a bug in the trading algorithm.
The sale of bitcoins at an unusually high price has now proved possible due to Binance.US’ low liquidity, which was caused by a conflict with the US Securities and Exchange Commission and partner banks – due to their actions, the site was forced to sell the fiat-US – Taking dollars off the market. While cryptocurrency prices on Binance.US were higher than other sites, it was only slightly — within 3%.