Pyth Bitcoin glitch

September 2021

Bloomberg reports that the recent 90% collapse in the price of Bitcoin from around USD 41,000 to USD 5,402 was likely due to a glitch on crypto data network Pyth.

According to a Pyth investigatory report 'The issue was caused by the combination of (1) two different Pyth publishers publishing a near-zero price for BTC/USD and (2) the aggregation logic overweighting these publishers’ contributions and both publishers encountered problems related to the handling of decimal numbers.'

Whilst the impact on Bitcoin investors remains unclear, it seems some financial trading systems automatically sold Bitcoin in response to the apparent drop in price.

Operator: Pyth

Developer: Pyth
Country: USA

Sector: Banking/financial services

Purpose: Provide pricing information

Technology: Pricing algorithm

Issue: Accuracy/reliability
Opacity: Black box