Bitcoin Price FLASH CRASHES to $8,900 Following $55 Million Orders
The Value of Bitcoin saw a brief crash down to $8,900 on the XBT/USD spot market last night as an anonymous trader sold more than $55 million worth, according to market analysts.
“An unknown entity sold over 400 Bitcoin in a short period of time on the BitMEX BTC/USD spot market,” Joe Parys reported in the video above. “BitMEX began investigating the situation internally, but this was massive. You can see these huge wicks as a rogue seller on BitMEX spot market … (brought) the price as low as $8,900.”
Perspective: Even as bitcoin gains traction within the highest echelons of Wall Street, marked by new institutional products from the likes of BlackRock and Fidelity , the nature of crypto spot markets remains highly volatile.
“If you are new to cryptocurrency, it’s very important to understand how liquidity works and whether or not this person knew it or not, they basically sent the price really, really low in a very short amount of time,” Parys explained. “Was this a liquidation hunt? And is bitcoin now ready (for new price highs) since we got … some of that out?”
More Details: Within a few minutes of the sell orders on BitMEX, the bitcoin price reached its lowest point since 2020, according to CoinDesk , though it quickly recovered to $67,000.
“Throughout the boom-bust episode on the BitMEX spot market, BTC’s Global Average Price was around $67,400,” CoinDesk added.
BitMEX noted that the crash “did not affect any of our derivative markets” and that “the trading platform is operating as normal and all funds are safe.”
Key Takeaways: Aside from last night’s dramatic flash crash, the bitcoin price has been demonstrating its volatility on global index exchanges as well.
After setting an all-time record at $73,790 last week, the price is down about 14%, sitting at $63,500 as of this writing. Some analysts believe additional losses are next.
“The bitcoin price risks the sub-$60,000 retest,” Parys reported. “If we go lower, this could be a deviation, or we could go all the way back lower into the fifties and the $60,000 zone is something to be watching.”
The Context: The bitcoin price has declined more than 11% in the last seven days, but it’s still up more than 21% in the last month as spot bitcoin exchange-traded funds (ETFs) have seen historic demand since listing at the beginning of the year.