Flash Crash: New Bitcoin All-Time High Followed By Massive Dump
Flash Crash: Bitcoin falls unexpectedly after hitting an all-time high. But, was it really unexpected?
Covered:
- Bitcoin Flash Crashes
- Evergrande Or Overleverage?
Bitcoin Flash Crashes
Another flash crash in store of value pic.twitter.com/jTEp1L2sKc
— Tom Hearden (@followtheh) November 10, 2021
Bitcoin (ticker symbol: BTC) crashed as much as 4.4%. It’s currently down about 3% and trading in the $65K USD range.
Earlier today BTC reached a new high of $69k on inflation news. But the dizzying highs were short-lived.
There is no clear reason for the flash crash. Speculation is it might have something to do with the Evergrande news. Evergrande is, apparently, officially bankrupt now — where it was just bankrupt before. It’s plausible that a news event like that could move a market.
Prior news-related flash crashes saw Bitcoin fall instantly. See: Elon’s now-infamous tweet that provoked the Bitcoin equivalent of Black Monday.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
Problem is, the Evergrande news hit hours before the flash crash occurred. So what gives?
Evergrande Or Overleverage?
The crash probably had something more to do with a lot of whale movement. A.K.A. there was some money to be made off of overleveraging. And, also whales probably just wanted to feel like God again.
Bitcoin TA guy Dylan LeClair pointed out: “Why the BTC pullback from 68k? There was a massive increase in BTC margined futures open interest this afternoon (traders going long BTC with BTC as collateral).”
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As sad as it might be that some people lost the money they borrowed from their grandmother, there are some who think this flash crash is a good thing.
It's been a while since we've had a flash crash.
Every time we breakout, people begin to overleverage which prevents us from moving higher.
Until we see sustained negative/flat funding, not looking to enter any new positions. pic.twitter.com/W8nvNLXeN3
— Carter (@moneywithcarter) November 10, 2021
The idea being, that some of the leverage needs to get flushed out again before moving up. Seems reasonable. We heard that same thing from Sam Bankman-Fried back during the Bitcoin Day crash. Not to mention, there was a flash crash back in early December 2017.
Yes early December 2017
— Crypto Hunter (@CryptoHunterGon) November 10, 2021
The parallels between 2021 and 2017 just keep getting creepier. Time will tell if these anonymous Twitter users are correct.
Though, they are definitely wrong, if you listen to this guy who doesn’t even think this was a flash crash.
$BTC down 2.43% over 24 hours and people are calling it a 'flash crash.'
settle down
— Jack Niewold (@JackNiewold) November 10, 2021
He might have a point.
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Text source: CryptosRus
