Despite The Bitcoin Rally, Binance's Trading Has Been Halted

Following Binance's announcement that all spot trading on it's own platform had been suspended due to a technical issue, bitcoin hovered around the $28,000 mark.

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As of 9:05 a.m., the currency was down about 1% to $27,960. New York, where. When Binance reported the issue roughly an hour earlier, it surged as much as 3% lower. Ether was down 3.6% compared to other tokens, and Cardano and Solana, two alternative coins, were both down 2.9%.

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Initial analysis of the problem revealed that Binance's matching engine "encountered a bug on a dragging stop order," according to chief executive Changpeng Zhao. He predicted recovery could take as long as two hours and added that cash transactions had been paused per standard operating procedure..   

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The biggest cryptocurrency exchange in the world is Binance. In the previous 24 hours, it processed a spot trade volume of almost $14.9 billion, according to data monitor CoinGecko. Its derivatives platform is substantially bigger, with a 24-hour volume of $64.7 billion, and it seemed unaffected.

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Prior to Wednesday, Bitcoin had been on an incredible run, rising to almost $29,000 despite a number of enforcement actions against cryptocurrency companies that the US Securities and Exchange Commission (SEC) had announced. The cryptocurrency has increased by about 70% so far this year, exceeding gains by smaller tokens in an unusual way.

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Conor Ryder, a research associate at blockchain data company Kaiko, wrote in a note on Thursday that "crypto markets are most volatile whenever liquidity is limited." Ryder claimed that as a result of the failure of numerous significant financial routes into cryptocurrency this year, the market for Bitcoin is currently at its lowest liquidity level in 10 months.