Bitcoin Price Flash Crash on Kraken Wipes 99% of BTC Value Temporarily

BTC market prices in the pairing with the Canadian dollar fell significantly in a trading glitch, with an alternative theory being the work of a hacker.

The low-volume market for Bitcoin (BTC) against the Canadian Dollar on Kraken may have caused jitters with a rogue order that sent the price down to around 101 CAD on June 2. Traders and Reddit users marked the anomaly, which wiped out 99% of the asset’s price, fulfilling one of the biggest fears for BTC.

The news exacerbated Tuesday’s sell-off, bringing down BTC prices to the $7,900 range. The BTC/CAD market, however, went even lower, to $7,700. There is still no certainty on the nature of the event, which is seen as either bot activity or a mistaken order.

Kraken is one of the closely watched exchanges, holding up several important markets. The exchange can be used for liquidating BTC for fiat, although the markets are quite slim. Additionally, Kraken is the only exchange with a fiat pair for Tether (USDT). In the past months, the market was closely watched by the internal team, for signs that it held some of the funds of the bankrupt QuadrigaCX exchange.

Kraken did not comment on the case on its social media. In the past, “fat finger” orders have caused significant trading anomalies. In some cases, however, as in an earlier attack against Binance, anomalous orders are seen as signs of hacking activity.

In the past, assets like Ethereum (ETH) have gone through similar flash crashes, usually restricted to one exchange. The BTC/CAD market, however, only slightly affected the asset’s trading, due to its low volume of around 1.1 million in 24 hours.

BTC trading is still not out of the woods when it comes to its general direction. After touching $9,000, BTC saw increasing selling pressure. BTC traded at $7.941.24 as of 8:55 UTC on Tuesday. The flash crash, which happened on June 2, was only a temporary event, triggered by the selling pressures which started to unravel BTC prices.

Over the past few weeks, BTC once again followed the pattern of rapid gains, followed by relatively deep price crashes as selling pressures increase.

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