Binance.US has commented on the reason behind extreme volatility that occurred on the exchange earlier today, claiming that the price drop was attributed to a vulnerability in the trading algorithm of one of its institutional clients:       

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.

The exchange’s spokesperson told Bloomberg that the issue has now been resolved.

As reported by U.Today, the largest cryptocurrency collapsed 87% to hit the $8,200 level.

There was some speculation that the accident was a low-liquidity flash crash, meaning that it wasn’t caused by a bug. 

https://t.co/VQL7TVykRa had a lack-of-liquidity flash crash this morning. $BTC fell to $8200 for 1 min. I explained why on Youtube (not glitch; per confidential source). Good learning experience on exchanges. (PS: Doesn’t affect my bullishness on $BTC; just an exchange failure).

— Meet Kevin Paffrath (@realMeetKevin) October 21, 2021

After hitting a new all-time high above $67,000 on Wednesday, the Bitcoin price has taken a bearish turn, shedding more than 5%.

At press time, its price is sitting below the $63,000 level on major spot exchanges.