Flash Crashes On The Rise: Understanding The Recent $300 Billion Crypto Drop
The crypto market is experiencing a significant upheaval, with a staggering $300 billion erased in just 24 hours. This massive sell-off has raised concerns among investors, prompting analysts to explore the underlying causes of this dramatic decline.
Bitcoin And Ethereum Plummet
According to insights from the Kobelsi Letter, a global commentator on capital markets, the frequency of “flash crashes” in the crypto sector has surged since January. These rapid price declines can occur without major bearish news, leaving investors puzzled about the sudden volatility.
The recent downturn began with Bitcoin (BTC), which initially fell below $95,000. However, a sharp drop from $95,000 to $90,000 within just 30 minutes early in the morning served as a wake-up call for traders.
Ethereum (ETH) has fared even worse, experiencing a staggering 37% drop over 60 hours on February 2nd, despite trade war headlines that had already been priced into the market.
