Bitcoin (BTC) Sees Sharp Drop to $23,000 Level. Key Reason Why


At 12:06 p.m. UTC, Bitcoin, the flagship cryptocurrency, plummeted to an intraday low of $23,636.

Some traders were surprised at the sudden drop. “Did someone just tie some weights to Bitcoin’s feet and throw it in the East River?” prominent Scott Melker joked.

As a result of a string of liquidations at Binance Australia, a subsidiary of the crypto giant, notorious crypto commentator Ran Neuner suggested that the dip was indeed caused by a string of liquidations. He then noted that the bearish price action was not systemic to the market, predicting that Bitcoin would rebound rapidly.

The Binance exchange closed the derivative positions of some Australian traders earlier today after incorrectly tagging them as “wholesale investors.”

Binance Australia acknowledged the error on Twitter, stating that it is committed to providing the best customer experience as well as adhering to “relevant Australian laws.”

As a result of a review of Binance Australia Derivatives’ onboarding process, some users were incorrectly categorized as wholesale investors. “To ensure a smooth transition, we have taken proactive measures to inform individuals whose access to certain products may be restricted,” said the exchange.

All affected users will be compensated following the most recent incident, according to the exchange.

At press time, Bitcoin has already managed to pare some of its losses, returning back to the $24,200 level. The strength of the U.S. stock market is playing in its favor. Stock futures soared on Thursday. Bitcoin futures jumped 0.9% on Thursday.

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