In Brief:
- The Pyth Network glitch showed the Bitcoin price at $5400.
- The crash happened between the BTC and USD pair on the Pyth Network.
- No other cryptocurrency pairs were affected by the crash.
A cryptocurrency data network, Pyth Network, run by some of Wall Street’s biggest players showed a roughly 90% plunge in Bitcoin price on Monday due to a glitch. Pyth BTC/USD aggregate price had several sharp dips below $40000 reaching as low as $5402.
The market crash resulted in billions of liquidations in the crypto space. The crash was so significant that it saw the price of Bitcoin lost almost 90% of its current value. The price crash lasted for approximately two minutes.
However, the problem wasn’t just limited to Bitcoin price reporting. Various Solana-based programs relying on the Pyth price were impacted by the incident. Its contributors include finance giants like Jump Trading Group, DRW and FTX. Additionally, Mike Novogratz’s Galaxy Digital also joined the Pyth Network.
Pyth Network acknowledged the crash on their Twitter account, assuring their users that they were working to figure out what caused it. There have been no further tweets from Pyth Network on the matter.
Pyth unveiled the root cause analysis for the software glitch. The glitch was caused by the combination of two different Pyth publishers. It did not affect the other pairs. No other cryptocurrencies have been reported to have suffered the same fate as bitcoin.
The crash led to massive liquidations on the platform, which were, “unfortunately working as intended,” tweeted Bonfida. Bonfida, a project built on Solana, said that decline resulted in a series of liquidations on the Audaces Protocol BTC-PERP market. Audaces is the perpetual future’s platform on Bonfida.
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