On Wednesday, June 26, the price of BTC came close to reaching $14K. One hour later, it had dropped by close to 18%. Such events are known as a flash crash, a moment in time where a rapid-sell off happens and often times a few exchanges become inoperable. Over the last few years, especially when the market is extremely bullish, flash crashes have been prevalent.
The June 2019 BTC Flash Crash
The price of bitcoin core (BTC) took a dive on Wednesday after touching $13,850, dipping to $11,900 at an extremely rapid rate. In the midst of the drop, Coinbase suffered an outage and customers could not access the website. Not too long afterward, the San Francisco exchange detailed that the platform was operational again. The outage and the $1,700 flash crash was yet another reminder of the risks assumed when people use centralized trading platforms. Cryptocurrency traders have dealt with flash crashes a lot over the years and it’s safe to assume there will be more in the future. In order to understand these events, news.Bitcoin.com has collected data on some of the biggest crypto flash crashes of our time.
Flash Crashes Have Plagued Crypto Traders Since 2011
Mt. Gox June 19, 2011 and April 10, 2013
One of the first big flash crashes was in 2011 when BTC was trading for $2 per unit on Mt. Gox before suddenly creeping up to $32 per coin. At the time, bitcoiners celebrated the fact that BTC met parity with 1 ounce of 0.999 fine silver. However, on June 19,