LATE MORNING UPDATE 11:45 AM

 

 

 

Below is a quick update on crypto and gold. According to Bloomberg, Yesterday’s flash-crash in crypto was triggered on the Binance exchange. Below is a chart and snippet from said article  (link below).

 

https://www.bloomberg.com/news/articles/2021-10-21/bitcoin-appears-to-crash-87-on-binance-in-apparent-mistake?cmpid=BBD102121_CUS&utm_medium=email&utm_source=newsletter&utm_term=211021&utm_campaign=closeamericas

 

 

Bitcoin Crashed 87% on Binance’s U.S. Exchange Due to Algo Bug

 

The price of Bitcoin rapidly plunged about 87% on Binance’s U.S. exchange Thursday morning, sinking to as low as $8,200 from around $65,000. The price did nothing like that on other venues, and on Binance the level almost immediately snapped back to where it had been.

“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,” Binance.US said in an emailed statement. “We are continuing to look into the event, but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved.”

 

The plunge occurred at 7:34 a.m. New York time, according to the Binance.US website. Volume on the exchange in that minute was 592.8 Bitcoin, which are worth just shy of $40 million at current prevailing prices.

 

 

 

 

The above flash-crash on the Binance exchange must have been what triggered the crypto plunge noted in last night’s report

I find it odd that the above crash affected Cardano (ADA) prices as well. I’ll dive deeper to discern what’s true. 

Whatever the case, this illustrates perfectly how an “Algo” or exchange glitch could take down the whole system. Just think how bad things would get if Tether proves to be a fraud. I believe Tether transactions account for something like 60% of the liquidity on Binance. 

 

 

 

 

Gold Update

 

GOLD DAILY SPOT: Gold is above $1800, and it looks like prices will finish the week above the 200-day MA ($1795 as of yesterday). To support additional upside and perhaps a new leg higher, I would need to see progressive closes above $1840.

 

Have a great weekend.