#Bitcoin /#euro Suffers Flash Crash on #coinbase
Bitcoin experienced a rapid flash crash against the euro trading pairs on Coinbase (COIN) Tuesday, losing 23.7% of its value in a short period of high volatility following its record high of $69,325 against the U.S. dollar.
During this tumultuous period, $BTC momentarily plummeted from €60,000 to €48,529 on Coinbase, while on Kraken, the price only dipped as low as €58,400. It took approximately 10 minutes for the price to bounce back to parity with other exchanges.
Flash crashes like this can be attributed to various factors. One common scenario is a lack of liquidity, where the number of market sell orders surpasses the available buy orders on the order book, causing the price to drop to the nearest level with sufficient bids.
Another potential cause, exemplified by a flash crash on Binance.US in 2021, is a trading error or glitch, often referred to as a "fat finger" trade, where a trader or algorithm inadvertently executes a large sell order at an incorrect price.
The discrepancy in euro #trading pairs occurred shortly after Bitcoin reached its all-time high in U.S. dollar terms, surging to $69,325 before quickly reversing its gains and falling below $64,000 within minutes.
Coinbase did not immediately respond to CoinDesk's request for comment.
Source - coindesk.com