Monday’s Asian trading session saw Bitcoin hit a new high. BTC prices were close to $56,700 at the time of writing.
Bitcoin posted its third weekly green candle, and its fourth daily one. The asset has seen a remarkable 17% increase over the past seven days, and 31% over two weeks. However, there was an issue with one popular trading platform, as pointed out Twitter trader “Hsaka”. This flash crash occurred on Bitstamp’s exchange. After a huge spot sale, prices plummeted to $51K on Bitstamp. However, markets elsewhere were not affected. pic.twitter.com/UiWTnbF9dg
— Hsaka (@HsakaTrades) October 10, 2021
Flash crashes are events in which an asset’s price drops rapidly by a significant percentage, then spikes back up quickly. This was exactly what happened on Bitstamp just hours ago. Bitcoin stood at $55,500, before plummeting to $51,000 as shown in the chart below. It rebounded just as quickly. The TradingView volume data indicates that there were 212 bitcoins being traded at the time, which most likely led to the sudden drop.
BTCUSD Flash Crash on Bitstamp. Source: TradingViewIt is important to note that this isn’t an isolated incident in cryptocurrency. CryptoPotato reported numerous instances in the past when the price of Bitcoin dropped by double-digit percentages within seconds. The price of the DOT/USD Quarterly Perpetual Futures Contract on the COIN margined Section of Binance Futures plunged from a high point of $33.862 down to $0.20 in a flash crash earlier this year.
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