LIVE[Last night Bitcoin crashed to $8,900]
Bitcoin price flash crashes to $8,900 following $55 million BitMex orders.
A short-lived flash crash on crypto exchange BitMEX drove the bitcoin price down to startling lows.
The bitcoin price 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 analysis.
“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.”
“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.”
- Reported by The Street