Bitcoin briefly hits $50,000 on Binance

On March 12, Bitcoin’s price surged to $50,000 on Binance after USD Coin (USDC) fell, causing market chaos. The price increase was short-lived and appeared to be the result of large orders being executed incorrectly.

Binance recently launched the BTC/USDC trading pair, and its rapid growth is believed to be caused by the order book for the new trading pair.

The sudden price movement was attributed to a wave of BTC/USDC orders engulfing limit sell orders for the pair, causing the price to rise to $50,000.

Bitcoin briefly hits $50,000 on BinanceBTC/USD | Trading View

Fortunately, futures markets were unaffected, avoiding a potential liquidation of short positions. However, this is not the first time that cryptocurrency trading platforms have experienced flash crashes and pumps, leading to outrage and demand for refunds from affected customers.

In August 2017, the GDAX flash crash caused the price of ETH to drop to $0.1, while the Crypto currency was normally trading at around $300 due to customer error, leading to increased anger and refund demands from affected customers.

The stablecoin USDC has lost parity with the US dollar, which has brought great uncertainty to the market. USDC fell to a low of $0.87 on March 11 after its issuer, Circle, disclosed that it had a $3.3 billion exposure to the defunct US bank Silicon Valley Bank.

The situation caused volatility in USDC pairs on other exchanges, with the BTC/USDC pair on Kraken rising above $26,000 amid fears of a USDC crash.

At the time, USDC was trading at a 10% discount, causing wild swings in the market.

In order to restore market confidence, the U.S. Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation decided to rescue the customers of Silicon Valley Bank and Signature Bank, but not shareholders or other investors, thus temporarily restoring market confidence.

USDC levels have recovered, and the market frenzy caused by bank failures has sent BTC prices up, leaving some victims.

Source of information: Compiled from CRYPTO by 0x Information.The copyright belongs to the author MIA, and shall not be reproduced without permission

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