TRENDING:
Oil price
XAU/USD
EUR/USD
GBP/USD
Silver
Sponsored by
|

Flash-crash on Binance exasperated BNB decline

  • Binance USD experienced a sharp collapse due to low liquidity.
  • BNB/USD dropped to the lowest level since the end of March 2019.
Flash-crash on Binance exasperated BNB decline
Tanya AbrosimovaTanya AbrosimovaIndependent Analyst

The cryptocurrency market collapsed with Bitcoin and all major altcoins suffered double-digit losses on Tuesday. However he real drama happened on Binance, where the proprietary stablecoin of the exchange - Binance USD (BUSD) -  experienced a flash crash against BTC. For a fraction of time, BTC/BUSD collapsed to $1,800 as the sell-off was allegedly amplified by trading bots and algo-traders. 

Most likely the flash-crash happened due to low liquidity of  BTC/BUSD. The trading pair stabilized fairly quickly, however, someone managed to purchase 20 BTC at a price of $1,800. Due to the small volume, this development did not affect the broader market. 

Meanwhile. Binace Coin (BNB) also experienced a strong selling pressure. BNB/USD has lost over 18% of its value in recent 24 hours to trade at $15.96 at the time of writing. This is the lowest level since the end of March. Notably, the sell-off happened against the growing trading volumes.

In a separate development, Binance announced the launch of Binance US trading. The US-based cryptocurrency exchange went live on Tuesday, September 24.

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

More from Tanya Abrosimova
Share:

Editor's Picks

Ripple recovery runs into headwinds amid fading retail and institutional interest

Ripple recovery runs into headwinds amid fading retail and institutional interest

Ripple (XRP) holds slightly above $1.30 on Monday, with short-term recovery prospects fading. Strong structural resistance toward $1.40 continues to cap upside, raising the risk of further downside below $1.30.

Crypto Today: Bitcoin, Ethereum, XRP extend recovery despite ETFs outflows

Crypto Today: Bitcoin, Ethereum, XRP extend recovery despite ETFs outflows

Bitcoin edges higher above $82,000, building strong structural support despite roughly $229 million in ETF outflows last week. Ethereum recovers above $2,400 as bulls strive to regain trend control, backed by a subtle recovery in momentum indicators.

Pi Network Price Forecast: Weak momentum and waning demand reinforce downside bias

Pi Network Price Forecast: Weak momentum and waning demand reinforce downside bias

Pi Network edges lower on Monday, risking a bearish conclusion to its short-term consolidation above the $0.0774 horizontal support. A steady decline in the notional value of active PI futures contracts and the weekly spot trading volume suggests reduced retail demand.

Zcash Price Forecast: Downside risk looms as ETF outflows and falling Open Interest weigh

Zcash Price Forecast: Downside risk looms as ETF outflows and falling Open Interest weigh

Zcash (ZEC) edges higher on Monday after three consecutive weeks of bearish closes totaling roughly 30% losses. The privacy coin is losing institutional confidence with three straight weeks of outflows, while retail speculation eases as ZEC futures Open Interest declines to a 30-day low.

Bitcoin: Macroeconomic headwinds, cooling demand cap BTC gains

Bitcoin: Macroeconomic headwinds, cooling demand cap BTC gains

Bitcoin (BTC) extends losses this week, trading below $82,500 as of Friday as selling pressure continues. Weakening institutional demand supports this pullback as BTC spot Exchange-Traded Funds (ETFs) are on track to record a two-week withdrawal streak, reaching $146.19 million in net outflows through Thursday.