Bitcoin Flash Crashes: Historical Context As BTC Recovers Losses

A bitcoin flash crash put a (temporary) end to the recent bull run, with bitcoin losing ten percent only days after doubling in price for the year. The result was another market panic,  with $21 billion shredded from the total market capitalization in 24 hours.

And just two days later, we are almost right back where we started – bitcoin is hovering around the $8,000 mark at the time of writing.

These flash crashes happen regularly in the crypto world, where whales and news cycles drive price more than value (perceived or otherwise). And while there have been occasions when the flash crash drove a catastrophic market collapse – as in early 2018 – the more seasoned bitcoin investor might be tempted to ride these dips.

A few of the more devastating crashes are mentioned here – but there have been dozens of corrections over the years that have, as yet, failed to crush the King of Cryptocurrencies.

A large sell order of 5,000 BTC was placed on Bitstamp for $6,200 – around 30 percent below the then-market price. Panic ensued, with Bitstamp leading the charge downwards for bitcoin. That sentiment quickly spread market-wide.

Influential crypto identity @DoveyWan suspects manipulation, making the argument that nobody with 5,000 bitcoin would leave it on an exchange to innocuously sell.

As NO ONE will simply keep 5000 BTC on exchange, this is deliberately planned dump scheme, aka manipulation imo

That dumper can on one hand dumping on stamp with poor liquidity > move the Bmx contract > 100x short on Bmx to take huge advantage in stacking cheap BTC