Bitcoin recovers above $7000 after sudden “flash crash”

  • by Ahmed Mamdouh
  • May 18, 2019, 3:1 AM
  • 139 Views
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The Bitcoin led sharp losses in cryptocurrencies today after a “flash crash” in the price of Bitcoin that took it down by thousand dollars in a matter of minutes.

The leading cryptocurrency fell from $7,800 to $6,200 after a sell order or a serious of sell orders of 5,000 BTC on Bitstamp crypto exchange.  

Most of the collapse occurred on Bitstamp due to presence of a $500 to $600 spread between its BTC/USD pair and the same pair on Coinbase.

Some believe that the Friday’s collapse was a sort of manipulation to the value of the BitMEX’s perpetual swap for Bitcoin.

The price of Bitcoin dropped to a low of $6,208.9 on Bitstamp, but it has recovered to $7,240.5.

The sharp sell off came after Thursday’s rally to $8,388.9, the highest level since July 2018.

However, some analysts see that the strong drop could be positive for the Bitcoin as it may be just a healthy correction after which prices would resume the latest bullish run.

Meanwhile, Ethereum and Ripple are trading 9.84 percent and 9.02 percent down, according to CoinMarketCap.

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at Ofeed.com, with 11 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from the American University in Cairo and a Bachelor Degree in Economics from the Faculty of Economics and Political Science, Cairo University.

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