File this under “only in crypto”.
While some avid market watchers are waiting for the price of Bitcoin To break the all-time high of nearly $ 20,000, a couple of traders got on Binance – the largest in the world Crypto Volume exchange – watched the coin go to the moon today. Even if only for a brief moment.
Bitcoin topped $ 20,000 and hit a whopping $ 82,000 … then quickly fell back as if nothing had happened. Fascinated? So we were …
According to the BTC / TUSD chart on Binance, an extremely long wick appeared on November 17 at 1 a.m. ET. Bitcoin started its green candle at $ 16,626 and lit a wick I agree $ 82,000 and concluded the 60 minute trip at $ 16,635.
The rest of the bitcoin pairs against the US dollar or its stable bitcoin equivalents (USDC, BUSD, DAI, PAX and USDT) were not affected. The trading volume during the rally also showed no anomalies. There was an increase in volume, but nothing out of the ordinary.
It’s hard to know for sure, but when you think about it relatively Small trading volume during the period compared to the absurd price spike to $ 82,000 – and the fact that Crypto Twitter didn’t sell bananas – all seems to indicate a mistake.
“Human error” by a trader would most likely have activated a series of market orders before the $ 82,000 price mark was reached. It would have cost a tremendous amount of money to change hands to reach that price organically, which would have practically depleted the trading pair’s liquidity.
In that sense, a mistake is the most logical explanation – at least the one we can think of. In fact, similar weird slip-ups have occurred at Binance before.
For example, on October 28, 2020 a large “Darth Maul sword” (a small candle with Super large wicks) appeared on the perpetual ETHUSD contracts, activating deals at certain prices without going through the standard order matching procedures.
Decrypt contacted Binance about today’s $ 82,000 BTC wick, but we haven’t received a response yet. And the dealers we spoke to were just as confused as we were. But we will definitely update when someone comes up with a better explanation.
At the moment, it’s best not to pull a McAfee and put your body parts on Bitcoin, which will hit that price mark again soon.