Bitcoin has suffered a so-called “flash crash” that knocked $4,000 from the bitcoin price in a matter of minutes (just after a Harvard economist admitted he got bitcoin and crypto wrong ten years ago).
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The bitcoin price, which has been on a downward trend since getting a boost from comments made by the Federal Reserve chair Jerome Powell on Friday, has continued to sink after plunging lower—with fears it could have killed off Kanye West’s new cryptocurrency that’s down 80% from its all-time high.
Bitcoin’s sudden decline, coming amid fears a U.S. dollar “crisis” could propel the bitcoin price higher, has been blamed on a single large holder cashing out 24,000 bitcoin worth over $2 billion, according to social media reports.
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The bitcoin price has dropped sharply in what’s been called a “flash crash,” dragging down the wider crypto market.
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“Bitcoin flash crash today, which wiped out $310 million in long positions, has been traced to a single bitcoin whale dumping bitcoin for etheruem,” Jacob King, a bitcoin and crypto market analyst and chief executive of research company WhaleWire, posted to X.
“The whale sold 24,000+ BTC, including coins that hadn’t moved in 5+ years, sending 12,000+ bitcoin today alone to the Hyperunite trading platform.”
The sudden sell off weighed on the wider crypto market, including ethereum, wiping around $100 billion from the combined $4 trillion crypto market in just 24 hours.
“This entity liquidated their entire 24,000 [bitcoin] balance, sending all of it to Hyperunite. They transferred 12,000 just today and are still actively selling, which is likely contributing to the ongoing price drop,” the pseudonymous founder of bitcoin data site TimeChainIndex Sani posted to X.
While some bitcoin and crypto market watchers blame the “flash crash” on a single seller, other suspect “coordinated actions” that could involve “institutional players.”
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The bitcoin price has suffered a flash crash sell-off, hitting the bitcoin price to the tune of $4,000.
Forbes Digital Assets
“It’s more likely the work of multiple whales or an exchange with significant holdings, rather than a single entity,” Kronos Research chief investment officer Vincent Liu told The Block. “Large-scale transactions like this often involve institutional players or coordinated actions.”
The bitcoin price downturn, following the bitcoin price rising sharply on Friday, has raised fears selling could spread to the wider crypto market.
“Bitcoin is trading at $112,000, having fallen at one point to $110,000, a new low since
early July,” Alex Kuptsikevich, FxPro chief market analyst, said in emailed comments.
“Friday’s surge seems to have attracted new sellers, pushing bitcoin below its 50-day average. So far, it looks like liquidity is being transferred from bitcoin to ethereum or other altcoins, such as solana. However, we cannot rule out the possibility that all processes are starting in bitcoin, and a similar shift to selling on growth is just
around the corner in altcoins.”
