The price of Bitcoin may have crashed on Sunday, by International brokerage EXANTE CEO, Anatoliy Knyazev says this was probably due to a technical glitch!
No Fundamental Reason Behind The Bitcoin Price Crash
“The drop, which occurred in the early hours of Sunday, is technical/speculative in nature, there’s no fundamental reason for the price action at this time of day, the world is dormant and almost no assets are priced globally.”
“Such spikes are still inherent to the crypto market structure, with prolific unregulated leveraged trading going on. Could be a case of an algo misbehaviour or, most probably, an attempt to cause some panic and buy cheaper Bitcoin when some simpler algorithms are triggered due to the sell, e.g. “stop loss” orders of retail clients with leveraged positions would be vulnerable.”
“One just has to keep this market structure in mind and approach Bitcoin as more of an illiquid asset still. If one trades with no to modest leverage and refrains from using “stop loss” orders, e.g. if one is holding for longer investment horizons, such flukes shouldn’t cause any trouble. They’re definitely not showing us a sudden change in fundamentals, Bitcoin’s not dead and won’t be.”
What do you think caused Bitcoin’s crash? Could it be a glitch? Perhaps its more and a large institution is trying to liquidate a big crypto portfolio? Another option is manipulation by a big player? In an unregulated market, it may be impossible to ever know for sure. Tell us your thoughts by sounding off in the comments section.