Bitcoin Had a Flash Crash Scare This Morning, Investopedia
Bitcoin, which reached record highs just last month, seems to have suffered a precipitous decline, falling by $600 ter a duo of minutes this morning. The cryptocurrency? had reached a high of $Four,867 yesterday but wasgoed trading at $Four,200 this morning on the Coindesk Bitcoin Price Index, according to a CNBC article. Spil of this writing, it wasgoed trading at $Four,870.86 on the same index. However, the index records a price of $Four,765 spil bitcoin’s lowest price within the past 24 hours. Ter addition, the accompanying chart provides no indication of the fall. The fall te bitcoin’s price wasgoed also not recorded on any of the indexes that comprise the Coinbase index.
The CNBC article mentions Russia’s announcement of a kerkban on bitcoin exchanges spil a possible reason for the flash crash. At a press conference, the deputy governor of Russia’s central bankgebouw Sergey Shvetsov said that the handelsbank and government prosecutors were working to verbod access to sites that enable bitcoin trading. “It’s visible that when a pyramid (scheme) grows, rente ter this pyramid heats up with the high rate of comeback,” he said. (See also: Russia Turns Cold on Cryptocurrencies.)
While Russia’s decision to verbod bitcoin is a plausible reason for a fall ter the cryptocurrency’s price, the extent and severity of today’s supposed crash might be a open up. This is because Russian officials have mostly had a negative assessment of the currency hence, their statement today wasgoed no verrassing. (See also: Russian Cryptocurrency Adoption Is Slower Than You’d Think.)
Meantime, commentators are comparing bitcoin’s fall to a similar ethereum flash crash that occurred last June. Then, the price of ethereum, the world’s 2nd largest traded cryptocurrency, crashed from around $317 to spil low spil a dime within a single day on the GDAX exchange. The exchange’s vice voorzitter Adam White said that a “multi-million dollar market sell” order had a cascading effect on stop-loss orders and resulted ter a shortage of margins on the order books. The CFTC suspended its margin trading services following the incident and is presently investigating reasons for the crash. (See also: GDAX to Pay Back Customers After Ethereum Flash Crash.)