Bitcoin Plunges to $8.9K on BitMEX in Flash Crash Event
In a notable incident, BitMEX, a cryptocurrency derivatives exchange, experienced a flash crash in Bitcoin's price, with the cryptocurrency momentarily plunging to $8,900 from a level around $60,000 to $67,000 on other platforms. This event, which occurred around 1 am UTC, saw the price on BitMEX hit its lowest since early 2020, before quickly rebounding within minutes. The exchange acknowledged the significant price movement and attributed it to an unknown entity or entities selling over 400 Bitcoin in batches of 10 to 50 BTC over a two-hour period.
Observers and analysts have speculated that this sell-off, often referred to as whale selling, could have been responsible for the temporary price crash. BitMEX responded by disabling withdrawals from some accounts and initiating an internal investigation to understand the dynamics of the unusual trading activity. Despite the market disruption, the platform assured users that all funds were safe and that trading operations were continuing as normal.
The incident has raised concerns about market volatility and the stability of cryptocurrency prices. The global average price of Bitcoin remained steady around $67,000, suggesting that the incident was isolated to the BitMEX platform. The sudden price drop has drawn attention to the risks inherent in the cryptocurrency market, particularly the potential impact of large-scale trades on market prices. Following the event, BitMEX stated that its systems had operated without interruption, and it was closely monitoring the situation with the involved accounts.
