Recent Price Flash Crashes
On April 13, 2025, the OM token plummeted from $6.30 to $0.37 within a few hours, a drop of over 90%, with its market cap shrinking from $6 billion to below $700 million, evaporating approximately $5.5 billion.
DEGO
On June 4, 2025, users on platform X mentioned that DEGO experienced a flash crash of nearly 50% following positive news about providing liquidity support on the BNB chain.
In the early morning of June 7, 2025
MASK saw a significant drop in the early hours of June 7, with a decline of over 50% within 24 hours. This was another notable flash crash following a similar magnitude drop on April 2, 2025.
Specific price data: According to sources like CoinMarketCap, MASK's price fluctuated between $2.59 and $3.59 at the beginning of June, but rapidly fell to $1.84 or lower after the flash crash.
WCT rose from $0.35 to over $1.3 in the past month, but within two days from May 31 to June 1, the price significantly dropped, halving to around $0.65, with a decline of up to 38%.
Common Causes of Flash Crashes
Macroeconomic Pressure:
The tariff policies of the Trump administration in 2025 (tariffs imposed on countries like China, Mexico, and Canada) triggered panic over a global trade war, leading investors to sell off risk assets (such as BTC, ETH, SOL).
The Federal Reserve may pause interest rate cuts or even raise rates in 2025, with bond yields rising (for example, the 10-year treasury yield increased from 1.33% to 4.3% in 2022), causing a simultaneous drop in cryptocurrencies and the stock market.
Liquidation and Leverage:
High-leverage trading gets liquidated during low liquidity periods, amplifying declines. For instance, on February 25, 2025, 364,000 traders were liquidated, resulting in a loss of $1.34 billion.
External shocks like the Bybit hacking incident triggered chain liquidations.
Market Sentiment and Speculation:
FOMO (Fear Of Missing Out) at the end of 2024 drove up prices, but after overheating in early 2025, profit-takers sold off (e.g., 96% of BTC profit supply).
Meme coins (such as DOGE, TRUMP, MAGA, TST) are more speculative and experience more severe flash crashes.
Low Liquidity:
Mid and small market cap coins (like TST, OM, MASK) have insufficient market depth, and small-scale sell-offs can trigger flash crashes, similar to OM's OTC sell-offs and MASK's whale sell-offs.
Regulatory Uncertainty:
The Trump administration's vague regulatory policies on cryptocurrencies (such as the unimplemented strategic reserve plan) caused market unease, affecting currencies like XRP.