Within minutes, the price of Bitcoin plummeted from around $7,800 to $6,400 in a flash crash, recording an unexpected 18 percent drop. What could have triggered the sudden Bitcoin price drop?
According to researchers and investors including Su Zhu, the CEO at Three Arrows Capital, and Eric Conner, a product developer at Gnosis, the bitcoin price plummeted as soon as a several thousand bitcoin sell order was placed on Bitstamp.
The CEO said:
Will Bitcoin Price Recover?
Zhu noted that given the recent price action of bitcoin and other crypto assets is a result of a market structure related move, he expects the market to recover relatively quickly in the near-term.
“This is a purely market structure related move, I expect it to be bought up extremely quickly,” he said.
According to researchers and investors including Su Zhu, the CEO at Three Arrows Capital, and Eric Conner, a product developer at Gnosis, the bitcoin price plummeted as soon as a several thousand bitcoin sell order was placed on Bitstamp.
The CEO said:
"BitMEX wicked down to $6,400. 2,000 BTC+ sell wall on Bitstamp absorbed. Looks like a mark price exploit by placing a large sell on stamp (1 of 2 oracles for mark on BitMEX) to trigger liquidations on BitMEX. You would’ve been fine on lvg long on Bitfinex which didn’t go below $7,000."
Following the 18 percent drop in the bitcoin price, traders have become more cautious about the short-term trend of the market.Will Bitcoin Price Recover?
Zhu noted that given the recent price action of bitcoin and other crypto assets is a result of a market structure related move, he expects the market to recover relatively quickly in the near-term.
“This is a purely market structure related move, I expect it to be bought up extremely quickly,” he said.
