Bitcoin hits $100,000 on Binance futures

On Binance, the quarterly bitcoin futures peaked at just under $ 100,000 – $ 99,964. Sudden movements like this are not new, but have been forgotten due to the slow, sideways price with no volatility.

With positions worth over a billion dollars liquidated by Bitcoin in a small step of $ 1,400, volatility is back. While the move might be over for now, more may be on the way. At press time, Bitcoin was trading at $ 11,300 and had a market cap of $ 208 billion. but during this decline some exchanges took place, especially Binance was a little confused.

Source: Binance

From the above, it can be seen that the quarterly futures that are still open have reached a high of $ 99,964; The reason for this was automatic trading or trading in bots and algae. On the stock market, slipping seems to have played an important role in this strange turn of events.

The wick had a total volume of $ 2.5 million at the time of writing. However, if the wick is cleared and Binance's charts are rewritten, more will occur. CZ, the CEO and co-founder of Binance tweeted,

“Another day in crypto. While we have price band protection, a user's algo has become ballistic and has sent multiple orders to accomplish this. We will probably have to adjust this diagram a little so that it is readable in the future. "

While this wick did not technically cause problems like auto deleveraging (ADL) for bitcoin futures, it did for Ethereum and other altcoins. XRP and TRX Perpetual contacts also suffered from wicks, which decreased to 22% and 7%, respectively.

This slip means that many trades are automatically cleared down while ADL is set up to prevent liquidations and help new users. It also prevents users from keeping their trades open.

March 2020

The drop recorded today was not the biggest drop. A similar ADL scenario took place in March, however, when BTC fell 50% within a few hours. Binance tweeted that "the Binance Futures Insurance Fund has used more than $ 6 million to reduce ADLs in the past 24 hours." They also made sure that if the fund were exhausted, more would be injected to ensure that users were protected.

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