In a surprising turn of events, users of the popular financial app Revolut witnessed an unusual drop in Bitcoin‘s price on Friday, unsettling many who rely on the platform. Observers noted the cryptocurrency’s value plummeting to $39,900, with some even receiving alerts of an unprecedented low at $0.02. This anomaly was not restricted to Bitcoin alone, affecting several other cryptocurrencies like XRP, Solana, and stablecoins such as USDT and USDC.
What Went Wrong?
These abnormal price shifts were confined to Revolut, as leading cryptocurrency exchanges and market data platforms did not record similar fluctuations. Tools like CoinMarketCap and CoinGecko showed stable readings, indicating that the issue was isolated and possibly rooted in a data misstep specific to Revolut.
Revolut’s customer service team addressed the issue, stating that the app was experiencing temporary disruptions and their technical team was working diligently to rectify the situation.
Could It Have Been a Liquidity Gap?
Ranveer Arora, an expert in algorithmic trading, speculated that this rapid devaluation might be due to a data relay malfunction or a potentially large sell order in a thin market. However, given the restricted scope of the anomaly, he leans towards a technical glitch in data reception. This incident underlines the risks tied to external data dependencies for real-time crypto pricing.
Marc Tillement from Pyth Data Association pointed out the fragility of price perception in systems overly dependent on uncertain data sources. He stressed that even one incorrect price feed could sway market opinions dramatically.
Tillement noted that reliable and transparent pricing infrastructure plays a pivotal role in sustaining faith among investors in an increasingly interconnected market landscape.
Revolut’s response team reassured users through notifications, explaining that a third-party service interruption had caused the data irregularity. They detailed that the price discrepancies were promptly amended, and a comprehensive investigation into the episode was underway.
The instability alarmed some users initially but was tempered by the fact that other primary cryptocurrency platforms demonstrated no signs of similar disruptions. Revolut promptly restored the system back to normal operations, mitigating broader repercussions.
