What Caused Bitcoin (BTC) Price to Crash to $2,700 on Binance?

Alarm bells were sounded on Friday when the price of Bitcoin (BTC) on Binance suddenly plunged to $2,700 from $27,000. The world’s biggest cryptocurrency exchanges in terms of trading volume suffered a glitch in its API which led to the temporary meltdown.

X (Twitter) users started sharing screenshots of the drop in Bitcoin price, demanding an explanation.

Binance Says Trading Not Affected

Shortly, Changpeng Zhao, the CEO of Binance, posted on X:

“Futures Kline (chart) display issue on BTCUSDT. The UI aggregated Kline has issue, the raw Kline via api is working fine. Trading not affected. Team is fixing.”

BTC/USDT price on Binance. Source: X (Twitter)

Read more: Binance Review 2023: Is It the Right Crypto Exchange for You?

As a result of the issue, some community members complained that they faced liquidation. One X user wrote to Zhao:

“My $200k just got liquidated. Can u fix it?”

However, Zhao repeated that it was a display-only issue and that trades were unaffected. Another community member questioned Zhao about concerns of traders who panic exited from trades due to the bug in the price display. They wrote:

“You say that transactions are not affected, but what about transactions that are closed in panic? There can be no such mistake.”

Due to the glitch, some joked that Binance was hinting at the future price-action of Bitcoin. Meanwhile, the community was awaiting the impact of around 118,000 Bitcoin options expiring later on Friday. The contracts have a notional value of $3.2 billion.

Read more: How To Trade Bitcoin Futures and Options Like a Pro

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