🫔🪙WBTC briefly touched $5,209📉
Speculation:
1.Liquidity⛲ issues: Low liquidity on a specific exchange or trading pair can lead to abnormal price movements.
2.Trading anomalies💸: Fat-finger errors, flash crashes, or other unusual trading events can cause brief price distortions.
3.🌉Arbitrage opportunities: Traders might have exploited price differences between WBTCBTCBTC and BTC on various exchanges.
4.🚫Stop-loss triggers: A cascade of stop-loss orders being triggered could have accelerated the price drop.
5.Flash loan attacks 🚨: A malicious actor might have exploited a vulnerability in a DeFi protocol to manipulate the price.
6.Order book imbalance 📊: An imbalance between buy and sell orders on an exchange's order book could have caused the price to swing rapidly.
7.Over-leveraged positions🫗: Traders with over-leveraged positions might have been forced to liquidate, causing a rapid price drop.
