New Bitcoin “Flash Crash” After Hitting $12,000
Bitcoin reminded everyone who had forgotten that the currency can still be very volatile in short periods of time. During a new so-called “Flash Crash” in the last few hours, the Bitcoin price jumped to $12,000, then fell by $1,500 in minutes and has since recovered to a level of $11,200 at the time of writing.
A Year of Flash Crashes
Flash Crashes that are characterized by very large price movements are not something new for crypto, even classic American stock exchanges can talk about it. Since computers and trading bots do trading it can sometimes go very fast.
The best-known so far Flash Crash was when the Dow Jones dropped by 1,000 points in just minutes on 6 May 2010. Jim Cramer, who earlier this year put VeChain on the global map with his company The Street, didn’t know what to say. In the video above, you can see the shocked CNBC journalists around 8 minutes after the Dow loses billions of dollars in 4 minutes.
Whales playing? https://t.co/BQn7u3FZ36— (((Frances "Cassandra" Coppola))) (@Frances_Coppola) August 2, 2020
Bitcoin Whales are getting more and more popular lately when it comes to Flash Crashes in the crypto market. Apparently, it’s easier for some people to agree on what level to sell and preferably do it all together.
The last time it was very clear that this happened was on May 9th of this year, just before the Bitcoin halving.
The Bitcoin price fell 15% that day after Whales liquidated their Bitcoin positions in parts of $2 million dollars, just when the clock struck 5 p.m. in California.
Well-known economist Nouriel Roubini said back then that Bitcoin looked like a pump and dump thanks to all the whales.
Again yesterday it was clear that the volume and violence associated with the Flash Crash was one that could only have been caused by very large players. The big red candle that appeared was indicated by the Bitcoin bull and supporter Anthony Pompliano as a reminder that acting with Bitcoin can still cause a lot of heart failure.
Bitcoin is the most ruthless asset in the world.— Pomp ? (@APompliano) August 2, 2020
Hits $12,000 and then drops $1,500 in minutes.
Not for the faint of heart.
On the other hand, it is of course a very positive signal that after a 15% fall, Bitcoin has climbed back to a level of $11,200.