BitGet suggests ‘sluggish market,’ Asian holidays caused BGB 56% drop, promises compensation for loses BitGet suggests ‘sluggish market,’ Asian holidays caused BGB 56% drop, promises compensation for loses
Asian holiday-induced low liquidity may have impacted major BGB slump, prompting swift Bitget response.
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Updated: Oct. 7, 2024 at 1:06 pm UTC
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Bitget exchange’s native BGB token plunged from $1.15 to $0.5344 on Oct.7 before partially recovering, causing concern among traders. The sudden volatility lasted about ten minutes, prompting Bitget to announce a compensation plan for affected users.
At approximately 02:58 UTC, the token’s value dropped by 56% in just five minutes. Shortly after, BGB rebounded to $0.9754, mitigating some immediate losses but leaving questions about the cause of the fluctuation.
Bitget addressed the incident by pledging to fully compensate users for any asset losses incurred during the event. The exchange committed to providing a detailed compensation plan within 24 hours and completing the process within 72 hours. In an official announcement, Bitget stated its dedication to enhancing customer experience by optimizing margin positions, risk management measures, and liquidation mechanisms to ensure a safer trading environment.
The exact trigger for the extreme price movement remains unclear. Potential factors such as low liquidity, market manipulation, or technical issues could have contributed to the sudden drop. Market conditions during the period were generally “sluggish,” possibly influenced by Asian holidays, which can affect trading activity and liquidity.
Ryan Lee, Chief Analyst at Bitget Research, offered insights to CryptoSlate, emphasizing the importance of viewing the price dip within a broader context. “While there have been fluctuations in BGB’s price today, it’s important to view it from a macro perspective,” Lee said.
“BGB has seen remarkable growth of over 130% in the past year and is one of the best-performing assets this year.
Occasional price dips are expected in any asset, and today’s drop could be attributed to overall market sluggishness, partly influenced by the holidays and Golden Week in Asia, which often affects market activity.”
Lee highlighted the token’s resilience and the community’s confidence in its long-term potential. He noted that BGB garners support from Bitget, Bitget Wallet, and the wider crypto community and that its price movements are closely tied to community engagement.
“It’s the community’s trust that has driven BGB’s strong performance,” he added. “We believe that the fast-paced innovation observed in the Bitget ecosystem will continue to fuel the growth and stability of BGB in the long run.”
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Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Bitget
Bitget is a Seychelles-based cryptocurrency exchange platform established in 2018 that provides services for trading various digital assets.