Bitcoin crashed to $5,402 in error on network
A cryptocurrency data network run by some of Wall Street's biggest players showed a roughly 90% plunge in Bitcoin on Monday, a glitch that didn't show up on other platforms.
The platform, called Pyth, is heralded by its supporters as an industrialgrade source for pricing information on assets like stocks and cryptocurrencies.
Its contributors include finance giants like Jump Trading Group, DRW and FTX. On Monday, it briefly reported Bitcoin's price as $5,402. "Engineers are continuing to investigate the cause and a full report is in the works," Pyth tweeted Monday morning. There have been no further tweets from Pyth on the matter.
It's an eye-catching error for a system that gets its information from some of the most sophisticated traders. "For something like this to succeed, the data needs to be something people can rely on," Joe Molluso, co-president and co-chief operating officer of
Pyth contributor Financial Inc., said
June interview.
Things seem to have returned to normal Tuesday. Bitcoin's price was recently given as $41,888, close to prevailing levels. It's the second recent problem. Pyth connects to the Solana blockchain, which stopped working for more than 17 hours last week.
That outage also took down Pyth. It's unclear how widespread any troubles caused by the Bitcoin plunge on Pyth might have been.
The Twitter account for Bonfida, a project built on Solana, said the decline "caused a series of liquidation events on the Audaces protocol BTC-PERP market (unfortunately working as intended)." Audaces is Bonfida's perpetual futures platform.
Meanwhile, the biggest U.S. banks appear to be sidestepping any fallout from the crisis at indebted developer China Evergrande Group that sparked a widespread selloff in stocks this week. Citigroup Inc. has no direct lending exposure to Evergrande, a spokeswoman
Virtu in a said. JPMorgan Chase & Co. and Bank of America Corp. also have no such links, according to people familiar with the matter, who asked not to be identified discussing private information.
Bank of America has no indirect exposure because it limits business in China to subsidiaries of U.S. companies, one of the people said. "Our indirect exposure through counterparty credit risk is small and with no single significant concentration," Danielle RomeroApsilos, a spokeswoman for Citigroup, said in an emailed statement.
Representatives for JPMorgan, Bank of America, Morgan Stanley and Goldman Sachs Group Inc. declined to comment. No U.S. banks are listed on Evergrande's principal bankers list, according to a report from debt research firm CreditSights. Goldman Sachs and JPMorgan appear on the developer's bondholder lists, but "largely through asset-management arms and at small ultimate dollar amounts," analysts led by Jesse Rosenthal wrote in the report on Monday.