At 10 am yesterday, BGB fell by nearly 60% in 10 minutes, from 1.13 to the lowest point of 0.53, but then within 20 minutes, it pulled back to 1.1. What kind of operation is this? This article will analyze the reasons for this plunge.
"On January 23, after OKB hit 48.36, it triggered the liquidation of multiple large leveraged positions. In addition, the market impact caused the price of the currency to fall, which further triggered the liquidation of pledged loans, leveraged transactions and cross-currency transactions, and finally caused the price to fall to 25.1 in a short period of time."
This time, BGB fell by nearly 60% in 10 minutes. Fortunately, the buying was strong and pulled back to the original price. Bitget has not yet issued a statement to explain the specific reasons. According to my guess, it should also be caused by serial liquidations.