Bitcoin Drop to $8,200 !!
Bitcoin flash crash (price crash) to $8,200 on Binance.US in possible trading mishap.
The price of bitcoin just suffered a flash crash, falling from $65,500 to as low as $8,200 on crypto exchange Binance.US. That’s an 88% drop that happened in a matter of seconds.
On other exchanges, the price fell but not by anywhere near as much. Generally, it dropped to around $64,200, with the price of ether also falling from $4,300 to $4,100.
This could have been caused by what’s known as a fat finger error (where a trader accidentally enters the wrong price) or by a large market order instead of selling their position in blocks of trades. Alternatively it’s possible it could have been a deliberate trade to manipulate the market.
Following the crash, the price of bitcoin briefly recovered to around $65,000 before reversing back to $64,500 at press time. The price of ether has struggled to recover too and is trading around $4,170.
Check video on Bitcoinfall
Whats is the reason for this downfall?
According to a Reuters report, Bitcoin flash crash was triggered by:
- China’s ban on financial institutions from providing services relating to cryptocurrency.
- Elon Musk’s tweets around the environmental sustainability concerns surrounding Bitcoin.
Does Investor Need to Worry ?
Volatility in Bitcoin is not a phenomenon but is one of its prominent features. That means it is normal for its prices to fluctuate up and down rapidly. Analysts believe that the current dip in price (Bitcoin Flash Crash) could be a healthy correction and could be a good time to invest in the crypto market.