Following Bitcoin’s relative stability around the $10,200 price mark, the cryptocurrency had suddenly crashed to $9,200 in a matter of just 50 minutes. This sudden crash comes a day after Bitcoin was making an impressive increase of $700, ranging from $9600 to almost $10,300.
Today, shortly before 22:00 UTC, Bitcoin had lost almost $1,000 of its value in a matter of 50 minutes. The primary cryptocurrency had flash-crashed to a current low of $9264 on BitMEX, before partly recovering to where it is trading as of writing this (around $9600).
BTC/USD, BitMEX 1 hour chart. Source: TradingView
As of now, there is no specific reason for this abnormal price behavior; however, a question mark could be related to Binance unscheduled maintenance, which lasted most of today. The biggest crypto exchange was not functioning for an unknown and unexpected reason.
Despite the above, during today’s flash crash, Binance was fully functioning, and all funds were reported by Binance to be safe.
Another explanation could be the recent Bitcoin’s price volatility. When an asset experiences volatility to one side, it’s reasonable to see volatility to the other side as well.
While experts say that the latest hype of the past few days, following the Golden Cross, might lead a short-term move in the opposite direction. In trading, most of the traders will lose; therefore, when everyone expects something to happen – the opposite usually takes place.
Altcoins Turned Red
The sudden drop in Bitcoin’s value didn’t skip the altcoins. More than that, the major cryptocurrencies had seen even sharper declines in their USD value than Bitcoin.
Ethereum had dropped to $260 after trading for more than $280 earlier today. EOS is recording almost 15% daily decrease, while Ripple and NEO are suffering from 6% and 9% drop respectively.
Tezos, on the other hand, continues to show strength: Following an all-time high against Bitcoin, Tezos is still in the green territory, rising 4% despite the severe drop.
Source: Coin360
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