The price of Bitcoin for the BTC/USD Quarterly Futures Contract on the leading cryptocurrency exchange in the world by trading volume Binance has skyrocketed during Bitcoin and Ethereum’s recent volatile price action in the cryptocurrency market. According to a notice issued by Binance on August 2, 2020, the BTC/USD quarterly futures contract’s price has reached $100,000 on the exchange’s futures trading platform.
A User was behind this spike, according to Binance
In the report, the cryptocurrency exchange Binance says that several orders were placed by only a single user on BTCUSD 0925 Quarterly Futures contract within a short duration of time on its platform. This caused the price for quarterly futures to go high to 99,964 USD on Binance.
The report reads:
“A single user placed a large number of orders over a very short period of time on the BTCUSD 0925 Quarterly Futures contract, resulting in a large candle wick up to 99,964 USD and a stretch of the K-line chart for all quarterly futures users.”
The company, later on, claimed to adjust to the quarterly futures’ K-line after receiving feedback from the community.
Binance CEO confirms the news Says “User’s algo went ballistic”
Changpeng Zhao (CZ) the CEO of the Binance cryptocurrency exchange has confirmed the news and says that the algo of a user “went ballistic” which sent the price value of the BTC/USD quarterly futures contract to hit nearly $100,000. As Changpeng Zhao said in a tweet:
“Another day in crypto. We do have price band protection, but a user’s algo went ballistic and sent multiple orders to achieve this. We will likely have to adjust this chart a bit so that it’s readable in the future.”
Binance CEO also shared a chart which is clearly indicating that the price wick surged high to 99,964 USD on August 2.
Apart from this, on the Binance Futures market, the ETHUSDT perpetual contract also saw some fluctuations early in the morning due to the high volatility, as per the Binance report.