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On Monday evening, Bitcoin (BTC) experienced a sudden and sharp drop on the BitMEX exchange, plummeting to $8,900 within minutes.
Following the flash crash, BitMEX announced via social media that it is currently investigating the large sell orders.
Bitcoin Flash Crash on BitMEX
Data from the candlestick charting platform TradingView indicates that the flash crash began at 22:40 UTC, with the price dropping to $8,900 in just two minutes, marking the lowest level since early 2020. However, the recovery was equally swift, with the price bouncing back to $67,000 before 22:50 UTC. Meanwhile, during this period, the global average price of Bitcoin on BitMEX remained stable at around $67,400.
After the incident, BitMEX, one of the leading cryptocurrency derivatives exchanges, issued a statement on platform X, acknowledging the unusual activity and assuring users of the safety of their funds.
The exchange stated, “We are investigating abnormal activity involving large sell orders by users on our BTC-USDT spot market over the past few hours.”
The exchange clarified that while the event affected the BTC-USDT spot market, it did not impact any derivative markets or the index price of XBT derivative contracts.
BitMex also assured users that its trading platform is operating normally and all funds are secure.
Whale Sell-Off Triggers Bitcoin Flash Crash
The incident has raised concerns among traders and observers, with many speculating that the rapid price drop was triggered by large sell orders typically attributed to institutional investors or ‘whales.’ Social media platforms, especially X, are abuzz with discussions surrounding the incident.
Still going. 850+ BTC, lowest price $8,900.
– syq (@syq) March 18, 2024
A user @syq claimed that a single entity sold off over 850 BTC, equivalent to approximately $54.9 million, causing the Bitcoin price to fall to $8,900.
The BitMEX XBT Index tracks the price of Bitcoin, serving as a benchmark for traders on the platform. Meanwhile, the XBT/USDT currency pair represents the price of Bitcoin priced in Tether, where USDT is the world’s leading dollar-pegged stablecoin.
A flash crash is typically defined as a sudden and significant drop in asset prices, followed by a quick recovery. This is not the first time Bitcoin has experienced such price volatility. CryptoPotato has previously reported multiple instances of Bitcoin’s price dropping by double-digit percentages within seconds.
Sentiment: Neutral
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