BTC never cease to surprise us. A new flashcrash happened a few hours ago, this time in the Bitcoin market of the popular Exchange Kraken (XBT). In less than 5 minutes, BTC lost more than $1000 of its value.
The peculiar event took place on April 25, 2019 at 16:45. The price dropped from 5465.3 USD to 4357.1 USD, filling a large number of purchase orders at unusually low prices.
During those 5 minutes, more than 1500 BTCs were moved. After this immediate sale, the price returned to its normal cost, closing the 5-minute candle at 5452.9 USD.
The event left several traders and enthusiasts somewhat puzzled. While some commented on their luck, others took advantage of the situation to recommend calm.
One of the “lucky ones” was Crypt0mer who simply shared the chart. He probably had some buying orders well below the current price as an investment strategy.
Among the prudents is the Latin trader SenseiTrailex, who explained that there was no need to fear these unusual falls but stressed that it is important to be cautious in a market that is still establishing its volatility.
These kinds of events have happened on other occasions. The explanations can range from bad bot programming to simple human errors. Another cause can be the quick entry or exit of a whale, placing big market sell orders to get money immediately.
Until now, it remains unknown who could be responsible for setting the order, so we can only speculate about the causes behind this strange incident.
A few days ago, a similar event occurred at Binance. On April 17, 2019, at 8:52 am, Waves suffered a close drop of 99% of its value, going from costing 5070 Sats to 10 satoshis. Immediately thereafter, the token rose 5000% to be placed close at 5078 Satoshis per token.
In addition to several coordinated Pumps and Dumps, generally in low volume coins, it is crucial to note that as with the case of BTC, the most important alts are also the object of this type of events. A notable example was when ETH lost almost 90% of its value, going from about $100 to a price close to $13 on December 6, 2018.