Bitcoin plummeted to $ 3.2 on KuCoin crypto exchange in a flash

On the night of August 4−5, the bitcoin rate BTC $104,365.40 Bitcoin -1.97% Market capitalization $2.07 trillion VOL. 24 hours $3.45 billion on the KuCoin crypto exchange dropped to $ 3.2 in a trading pair with the algorithmic stablecoin DAI. After this sharp decline, the market leader’s rate on the exchange recovered and at the time of writing is trading at $ 55,700. KuCoin representatives did not comment on the incident.

This is not the first case of an abnormal asset’s decline on crypto exchanges. For example, in March 2024, bitcoin fell to $ 8900 on the BitMEX exchange due to a large sale of 400 BTC. Similar incidents have also occurred with other tokens. For example, the ApeCoin (APE) token suddenly rose from $ 4.2 to $ 90 on the Korean exchange Upbit in April 2023.

As a reminder, on August 5, bitcoin fell below $ 50,000 on crypto exchanges, and Ethereum broke through the $ 2200 price mark. The capitalization of the crypto market fell by more than 13% per day. Representatives of trading platforms named possible reasons for the sharp collapse, including the fall in Asian indices and the actions of one of the market makers, Jump Trading. Shares of crypto companies, including MicroStrategy and Coinbase, fell by an average of 19%.