Summary
TLDR: Bitcoin experienced a flash crash on BitMEX, dropping to $8,900 before quickly rebounding to $67,000. Speculation suggests a large sell order caused the crash. BitMEX is investigating potential misconduct by traders and has blocked withdrawals for some accounts. The incident may have broader implications for the cryptocurrency market.
Key Points
1. Bitcoin experienced a drastic flash crash on BitMEX, plummeting to as low as $8,900, a stark contrast to prices on other exchanges which remained above $60,000.
2. The rapid descent began at 22:40 UTC and within two minutes, prices had fallen to their lowest level since early 2020, followed by a quick recovery to $67,000 within 10 minutes of the drop.
3. Speculation suggests that the price crash may have been triggered by a large sell order, or “whale selling,” with BitMEX investigating potential misconduct by traders on their Bitcoin-USDT Spot market.