Crypto Markets Flash Crash as Bitcoin (BTC) Price Sinks Below $8,000
The latest sell-off took down BTC prices under $8,000, wiping hundreds of dollars within hours.
Bitcoin (BTC) is not out of the water yet - keeping its gains has proven challenging over the past few days and now another flash crash wiped out hundreds of dollars, breaking the recovery and bringing BTC down below the $8,000 range. Altcoins followed suit, with small exceptions, also wiping out around 10% of their value.
BTC traded at around $7,900 as of 14:00 UTC on Tuesday, however, despite the crash, trading volumes remain high, at above $23 billion’s equivalent in 24 hours.
The current BTC dip caused varying reactions - from an expectation BTC prices may burrow lower, to a prognosis that another altcoin season may start. Some see the cause of the crash as direct market manipulation:
The sell-off is also happening with a smaller share of Tether (USDT) trading, just 59% of all volumes. While USDT pairs took up more than 75% during the climb, the sell-off seeks to park funds into fiat.
The only survivors of the flash crash were Bitcoin SV (BSV), which is undergoing increased price volatility. BSV held onto some of the gains, at $221 as of 14:00 UTC, although even this outlier was starting to drop early on Tuesday.
The other exception was Cosmos (ATOM), peaking above $7.20 on Asian trading. But even ATOM was experiencing a reversal, sliding toward $6.50.
The current market activity also led to a higher network load for Bitcoin, with more than 33,000 transactions waiting their turn. With the price recovery of the past month, the network activity picked up again, increasing fees. Next block fees are as high as $3.99.
In the meantime, the Bitcoin hashrate has fallen from 57 EH/s to 46 EH/s. It is possible miners are slowing down their activity on purpose after the last adjustment period saw difficulty rise more than 11%.
The current state of BTC trading sees price action as risky. Predictions range between a 30% correction or a deeper slide comparable to that after the 2017 peak.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.