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HomeCrypto AnalysisLeaked Revelations Shed Light on Shocking 87% Bitcoin Price drop in 2021

Leaked Revelations Shed Light on Shocking 87% Bitcoin Price drop in 2021

Leaked revelations from a former employee of Alameda Research unveil shocking details about the massive Bitcoin price drop in 2021 due to a major error.

Startling revelations have emerged from a former employee of Alameda Research regarding the massive 87% plunge in Bitcoin’s price during 2021. The drop, which occurred on October 21, 2021, on the Binance.US exchange, is alleged to be the result of a trader at Alameda mistakenly entering an incorrect decimal point. This disclosure is part of an exposé on the inner workings of the company led by FTX co-founder Sam Bankman-Fried.

During the drop, Bitcoin’s price plummeted rapidly from approximately $65,760 to as low as $8,200 within minutes before swiftly rebounding. This left traders in search of an explanation. Initially, Binance.US attributed the issue to a bug in the trading systems of one of its institutional traders. However, a former Alameda Research employee revealed on Twitter that the mishap was caused by a trader at the firm who accidentally sold a block of BTC for a fraction of its value due to a manual trading system error. Arbitrage traders capitalized on the mispricing and restored Bitcoin to its normal levels, but Alameda suffered substantial losses as a result.

SourceCoinDesk

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