Bitcoin's $83,000 Price Drop Caused By ‘Software Glitch’ And ‘Manipulation,' Says Tom Lee

Core Insights - Tom Lee, chairman of Bitmine, attributes Bitcoin's recent price decline to a "mechanical glitch" and acknowledges potential deliberate market pressure [1][6] - Bitcoin's price fell to nearly $83,000, marking its lowest point since April, with analysts indicating a firm bear market [1] Group 1: Technical Issues - Lee linked the downturn to a technical failure in a stablecoin pricing feed on an exchange during the crash on October 10, which led to automatic liquidations [2] - The core issue was described as an automation flaw related to Auto-Deleveraging Liquidation (ADL), which Lee characterized as a code error that should have utilized pricing from multiple exchanges instead of relying on internal quotes [3] - Lee compared this malfunction to historical failures in financial markets, suggesting that the crypto market has been struggling since the October 10 event [4] Group 2: Market Reactions - The incident involved a synthetic dollar, USDe, created by Ethena Labs, which dropped to $0.65 on Binance, causing widespread concern about a potential depeg [7] - Analysts are predicting that Bitcoin may decline further, with expectations of reaching around $80,562 [6] - While Lee refrained from naming specific market-making firms involved, indications suggest that Binance may be linked to the technical glitch [5]