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Bitcoin Flash Crashed To 8200$ In Binance.US

By Cryptopeach | Public Thoughts | 22 Oct 2021


Hello,

Yesterday a odd event occurred, Bitcoin dropped to 8200$ for a few seconds in Binance US branch.

If you had a order set for this price your order would be filled and you would cash in a huge deal. If you had a order to buy 1 BTC at 8200$ you would cash in over 50K$ in seconds.

This seems nice if you got lucky but this is really bad if you had leveraged positions. Imagine being liquidated out of your money because of this.

Leverage is very risky in stock market but in crypto is insanely risky, this isn't the first time it happened. This happens mostly with low liquidity assets and maybe Binance US was having liquidity problems.

What to take from this?

If you want to play a little bit, you can set low limit buys to try to cash in one of this events, this will not affect your portfolio and possibly can make you great profits. From another side of the question, be very carefull with leverage, you will be liquidated by this events and will feel like you got stolen. Your best bet is to never play with leverage and the higher the leverage the higher the risk.

This caused a huge dip in altcoins to, but the market recovered very quickly.

If you want to take advantage of this start by making limit orders at low prices and you might get lucky.

Best Regards,

Cryptopeach

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Cryptopeach
Cryptopeach

Crypto enthusiast.


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