The Future Coin

Bitcoin

$13,043.41

BTC -0.69%

Ethereum

$408.82

ETH -1.30%

XRP

$0.25

XRP -1.25%

Litecoin

$59.41

LTC 0.58%

EOS

$2.65

EOS -0.64%

  • News
    • Bitcoin News
    • Ethereum News
    • Ripple News
    • Litecoin News
    • Altcoin News
    • Blockchain News
    • Business News
    • Technology News
    • Policy & Regulations
  • Markets
    • Market News
    • Market Analysis
    • Price Indexes
    • Top Cryptocurrencies
    • Heatmap
  • Opinion
  • Cryptopedia
    • Explained
    • Bitcoin101
    • Ethereum101
    • Bitcoin Cash101
    • ICO101
    • Ripple101
  • Press Releases
No Result
View All Result
The Future Coin
No Result
View All Result
Home Technology News

‘Another Day In Crypto,’ Warns Binance CEO After ‘Nightmare’ Bitcoin Futures Spike To $100,000

by The Future Coin
August 7, 2020
in Technology News
0
‘Another Day In Crypto,’ Warns Binance CEO After ‘Nightmare’ Bitcoin Futures Spike To $100,000
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

Bitcoin, after suddenly soaring early last week, had a difficult day last weekend.

The bitcoin price briefly topped $12,000 only to flash-crash early on Sunday morning, pushing bitcoin back to just over $10,000.

Meanwhile, bitcoin and cryptocurrency exchange Binance, the world’s largest by volume, was having problems of its own—with one trader briefly sending the price of some bitcoin futures to $100,000.

MORE FROM FORBESU.S. Congressman: Coronavirus Crisis Will Make Bitcoin ‘More Important’ And ‘Stronger’By Billy Bambrough

bitcoin, bitcoin price, bitcoin futures, Binance, image

Bitcoin futures, allowing investors to speculate on the future price of bitcoin, have become … [+] increasingly popular in recent years.

Getty Images

“Another day in crypto,” Binance chief executive Changpeng Zhao, often known as CZ, warned via Twitter, revealing the bitcoin futures price spike and explaining, “a user’s [algorithm] went ballistic and sent multiple orders to achieve this.”

Bitcoin futures trading has surged in popularity over the last year or so, boosted by exchanges such as Binance, and the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) offering long-awaited cash-settled bitcoin futures.

According to a statement released by Binance after the “large price fluctuation,” the “extreme” price movement in the bitcoin quarterly futures contract “did not cause any liquidations in user positions.”

“We do have price band protection,” CZ added, meaning the rogue trade did not cause other traders to lose the capital they’d used to speculate on the future bitcoin price.

MORE FROM FORBESWall Street Revealed To Be Edging Out Bitcoin Traders With $1 Million+ TransactionsBy Billy Bambrough

bitcoin, bitcoin price, bitcoin futures, Binance, chart

The bitcoin futures spike to around $100,000 was explained by one user’s algorithm going … [+] “ballistic.”

Binance

Despite assurances, the bitcoin futures price spike caused consternation among crypto traders.

“Crazy price spikes like this are a trader’s worst nightmare,” professional bitcoin and crypto trader and author of The Crypto Trader, Glen Goodman, said via email.

“Thankfully, Binance’s systems ensured nobody’s account was liquidated, but not all exchanges would be so responsible in a similar situation.”

Bitcoin and crypto exchanges including Malta-based OKEx, Singapore-based Huobi and Saychelles-based BitMex, along with Binance, currently of no fixed address, dominate bitcoin futures trading, with billions of dollars’ worth of contracts traded across the platforms every day.

“It’s a wake-up call to all traders that you need to make sure you use a respected exchange for your trading,” Goodman said, adding: “It’s also a timely reminder that when you trade obscure derivatives like quarterly bitcoin futures, all it takes is one giant whale to corner all the little fish and liquidate their accounts.”

Others, however, saw the bitcoin futures price spike as nothing more than an unfortunate blip for the burgeoning market.

“Bitcoin has come a long way in the past 11 years,” Cory Klippsten, tech investor and founder of bitcoin buying app Swan Bitcoin, said via Telegram. “An event like this on a single exchange is no longer a cause for concern.”

bitcoin, bitcoin price, bitcoin futures, Binance, chart

The bitcoin price has soared over the last month, adding a staggering 25% and pushing it above the … [+] psychological $10,000 per bitcoin level.

Coinbase

Klippsten pointed to bitcoin’s tumultuous history of spikes and crashes as evidence this latest roller coaster won’t negatively impact bitcoin or cryptocurrency in the long term.

“Anomalies on individual exchanges don’t seem to matter much for adoption,” Klippsten said.

“The history of the space has been filled with flash crashes or spikes and exchange hacks, but observant people understand that it’s a matter of improving on immature infrastructure, not a problem with cryptocurrency itself.”



Source link

EDITOR’S CHOICE

Evolving Technology, Trends and Industry Analysis 2024 – PRnews Leader

Then & Now: Leveraged opportunities shape Adams’ success

High-Profile Crypto Trader Says Ethereum, XRP and Three Small-Cap Altcoins Set to Break Out After Bitcoin’s Big Move

Litecoin, NEM, FTX Token Price Analysis: 25 October

Fourth Largest Crypto Ripple Considering Relocating to London over US Regulations

Pullback Possible, But Neither Trump Nor Biden Won’t Stop Bitcoin

Best Pick For You

News

  • Altcoin News
  • Bitcoin News
  • Blockchain News
  • Business News
  • Ethereum News
  • Litecoin News
  • Ripple News

Features

  • Market Analysis
  • Opinion
  • Explained
  • Policy & Regulations
  • Top Cryptocurrencies
  • Technology News

Market Tools

  • Market News
  • Price Indexes
  • Bitcoin Price Index
  • Ethereum Price Index
  • Bitcoin Cash Price Index
  • Litecoin Price Index
  • Monero Price Index
  • HeatmapPartner

Cryptopedia

  • Explained
  • Bitcoin101
  • Bitcoin Cash101
  • Ethereum101
  • ICO101
  • Ripple101

© 2020 Coingraph

No Result
View All Result
  • News
    • Bitcoin News
    • Ethereum News
    • Ripple News
    • Litecoin News
    • Altcoin News
    • Blockchain News
    • Business News
    • Technology News
    • Policy & Regulations
  • Markets
    • Market News
    • Market Analysis
    • Price Indexes
    • Top Cryptocurrencies
    • Heatmap
  • Opinion
  • Cryptopedia
    • Explained
    • Bitcoin101
    • Ethereum101
    • Bitcoin Cash101
    • ICO101
    • Ripple101
  • Press Releases

© 2020 Coingraph

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
bitcoin
Bitcoin (BTC) $ 12,989.22
ethereum
Ethereum (ETH) $ 408.07
tether
Tether (USDT) $ 1.00
ripple
XRP (XRP) $ 0.253231
bitcoin-cash
Bitcoin Cash (BCH) $ 272.26
chainlink
Chainlink (LINK) $ 12.20
binancecoin
Binance Coin (BNB) $ 30.17
polkadot
Polkadot (DOT) $ 4.31
litecoin
Litecoin (LTC) $ 59.29
bitcoin-cash-sv
Bitcoin SV (BSV) $ 182.93
cardano
Cardano (ADA) $ 0.107558
usd-coin
USD Coin (USDC) $ 0.999503
eos
EOS (EOS) $ 2.64
monero
Monero (XMR) $ 132.47
crypto-com-chain
Crypto.com Coin (CRO) $ 0.099254
tron
TRON (TRX) $ 0.026987
stellar
Stellar (XLM) $ 0.083413
tezos
Tezos (XTZ) $ 2.18
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 12,980.55
cdai
cDAI (CDAI) $ 0.020835
cosmos
Cosmos (ATOM) $ 5.34
okb
OKB (OKB) $ 4.61
neo
NEO (NEO) $ 17.84
leo-token
LEO Token (LEO) $ 1.25
huobi-token
Huobi Token (HT) $ 4.42
nem
NEM (XEM) $ 0.106250
dai
Dai (DAI) $ 1.01
vechain
VeChain (VET) $ 0.011936
iota
IOTA (MIOTA) $ 0.278529
binance-usd
Binance USD (BUSD) $ 0.999972
filecoin
Filecoin (FIL) $ 34.56
theta-token
Theta Network (THETA) $ 0.701834
dash
Dash (DASH) $ 71.41
zcash
Zcash (ZEC) $ 63.01
ethereum-classic
Ethereum Classic (ETC) $ 5.53
uniswap
Uniswap (UNI) $ 2.89
maker
Maker (MKR) $ 591.05
celsius-degree-token
Celsius Network (CEL) $ 1.31
havven
Synthetix Network Token (SNX) $ 3.62
omisego
OMG Network (OMG) $ 3.33
compound-ether
cETH (CETH) $ 8.17
yearn-finance
yearn.finance (YFI) $ 14,510.07
uma
UMA (UMA) $ 7.81
aave
Aave (AAVE) $ 39.30
compound-governance-token
Compound (COMP) $ 103.53
paxos-standard
Paxos Standard (PAX) $ 1.00
ftx-token
FTX Token (FTT) $ 3.89
ontology
Ontology (ONT) $ 0.539233
waves
Waves (WAVES) $ 3.40
aave-link
Aave LINK (ALINK) $ 12.10