Bitcoin Flash Crashes To $8K on Binance; CEO Zhao Warns of Volatility

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The world's biggest cryptocurrency, Bitcoin (BTC), crashed by 87% at 7:30 a.m EST on Binance, after reaching an all-time high.

Following this event, Binance CEO Changpeng "CZ" Zhao issued a warning via Twitter on Thursday, stating that increased volatility will engulf the cryptocurrency market, which achieved a new high of $2.6 trillion.

"Expect very high volatility in #crypto over the next few months," CZ wrote.

Binance.US printed a huge bearish one-minute candle that shot down the price of the BTC/USD pair from $65,815 to $8,200, as seen in the 1-hour chart provided by TradingView.

Crypto-market analyst and trader Crypto Chase had a sarcastic response to the situation.

"Well done Binance US," the tweet read.

Crypto Chase further pointed out that this erroneous printing of price action will affect Binance users in the U.S., "where they can get completely scammed on unreasonably thin books," he tweeted.

"It's not fair that some get stopped out and some stay in, some get fills, and some don't," Crypto Chase added.

According to the data presented by Forbes Senior Contributor Billy Bambrough, the price of Bitcoin lost $1k on Coinbase as a result of this flash price crash. ETH's price also lost around $2k while the BTC trading volume on Binance.US was $40 million.

In an email sent to Bloomberg, Binance.US confirmed this scenario citing a bug as the source of this event.

"One of our institutional traders indicated to us that they had a bug in their trading algorithm, which appears to have caused the sell-off," Binance said. "We are continuing to look into the event, but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved."