Welcome back, Traders! Yesterday was quite the day. Bitcoin enthusiasts were in for a wild ride as the cryptocurrency unexpectedly plunged to $8,900 on BitMEX, thanks to some hefty sell orders worth $55.49 million. But fear not, the crash was as brief as a hiccup!
The Flash Crash
Late Monday, the crypto community witnessed Bitcoin (BTC) experiencing a sudden tumble to $8,900 on BitMEX, while other exchanges maintained their cool with prices comfortably above $60,000.
The freefall commenced at 22:40 UTC, and within a blink of an eye, prices nosedived to $8,900, hitting lows not seen since early 2020, according to data from TradingView. But hold your horses; the recovery was just as swift, with prices bouncing back to $67,000 by 22:50 UTC.
During this rollercoaster ride on BitMEX, Bitcoin’s global average price hovered around $67,400.
Rumors were rife on social media, with some pointing fingers at whale-sized selling as the catalyst for the crash. According to @syq, an individual offloaded over 850 BTC ($55.49 million) on BitMEX, dragging the XBT/USDT pair down to $8,900.
For those not in the know, BitMEX’s XBT index keeps tabs on Bitcoin’s price, while the XBT/USDT pair tracks its tether-denominated price. Tether, in case you’re wondering, is the numero uno dollar-pegged stablecoin out there.
Post-crash, BitMEX took to social media, assuring users that they’re on the case. “We launched an investigation as soon as we saw unusual activity on our BTC-USDT Spot Market. All of our systems were operating as normal, but we identified aggressive selling behavior involving a very small number of accounts widely beyond expected market ranges,” said BitMEX in a statement.
But fret not, dear crypto comrades! BitMEX emphasized that the trading platform is business as usual, with all funds sitting pretty safe and sound.
My Trade Set-up
Honestly, I had an order to long BTC around 64k USD on Bybit, Luckily, the flash crash on Bitmex did not trigger similar action on the other exchanges. I would have gotten rekt pretty bad in that scenario.
Currently, I set a long order at $61450. This level is important to hold, if we break it down we could potentially see 50-53k again. My stop-loss on the trade is at $58400. In that case, I’d look to re-enter the market again lower.
In other news, Craig Wright is not Satoshi!
Amidst the chaos of Bitcoin’s flash crash, another bombshell dropped in the crypto world. Craig Wright, the controversial figure who has long claimed to be the mysterious Satoshi Nakamoto, had his claim refuted once again. The true identity of Bitcoin’s creator seems shrouded in mystery, adding another layer of intrigue to the ever-evolving crypto saga.
Final Thoughts
In a nutshell, Bitcoin’s flash crash may have given us a momentary scare, but it’s back to business as usual in the wild world of cryptocurrencies!
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You might also like our recent trading blogs about The crazy $BOME and $NICK Memecoins.
