Alarm bells rang on Friday when the price of Bitcoin (BTC) on Binance suddenly plummeted from $27,000 to $2,700. The world’s largest cryptocurrency exchanges by trading volume suffered a bug in their API, causing a temporary collapse.
X users (Twitter) started sharing screenshots of the Bitcoin price drop and demanded an explanation.
According to Binance, trading is not affected
Shortly after, Binance CEO Changpeng Zhao posted on X:
“Futures Kline (Chart) Indicates Problems in BTCUSDT. Kline aggregated via UI has a problem, raw Kline via API works fine. Trade is not affected. The team repairs.”
BTC/USDT price on Binance. Source: X (Twitter)
Read more: Binance Review 2023: Is it the right crypto exchange for you?
Due to the issue, some community members complained that they were facing liquidation. An X user wrote to Zhao:
“My $200,000 was just liquidated. Can you fix it?”
However, Zhao reiterated that it was just a display issue and that trading was not affected. Another community member asked Zhao about the concerns of traders who exited trading in panic due to the error in the price display. They write:
“They say transactions are not affected, but what about transactions that are completed in a panic? There can be no such mistake.”
Due to the error, some joked that Binance was giving a hint about the future price movement of Bitcoin. Meanwhile, the community awaited the impact of the expiration of around 118,000 Bitcoin options on Friday. The contracts have a nominal value of $3.2 billion.
Read more: How to trade Bitcoin futures and options like a pro
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