We gonna talk about that flash crash?

[jaysabi]

November 29, 2017: bitcoin falls from around $11,400 to around $8,600 in about four hours. That's a flash crash if I've ever seen one. 24.5% decline, then a sharp movement back up to about $10,000 45 minutes later. The volatility is extreme, even by crypto standards. In the midst of that, I was seeing a bid ask spread over $200 where I am accustomed to it being under $1 much of the time.




Any theories on the cause?

[CryptoKyddie]

Im not sure if that is really what we would call a "flash crash". Surely just a small fat finger trade or some other jiggery pokery? Follow your own research, head and heart especially in cryptoland

[tabas]

No theory at all, whales are just taking their money now. After a quick dumped, look at the charts again now as the price of bitcoin is now starting to be fueled and pumping again. And as you will notice, majority of the crypto's are on down so these whales are seriously simply taking their profits.

[trobin]

It was certainly a rapid downfall but after all of it bitcoin is back about where it was. I think people are just taking profits and taking advantage of uncertainty in the market to swing trade.

[aoluain]

FLASH is the proper description for it but no panic Bitcoin is back on track.
I think we are going to see this far more regularly. Someone posted in a
different thread that as the price gets higher the volatility will increase......
or something of that nature.

[BERMUDAL]

FLASH is the proper description for it but no panic Bitcoin is back on track.
I think we are going to see this far more regularly. Someone posted in a
different thread that as the price gets higher the volatility will increase......
or something of that nature.

isn't it just the opposite? The larger the marketcap the lower the volatility? because you need more and more money to even influence said coin.

[jaysabi]

FLASH is the proper description for it but no panic Bitcoin is back on track.
I think we are going to see this far more regularly. Someone posted in a
different thread that as the price gets higher the volatility will increase......
or something of that nature.

isn't it just the opposite? The larger the marketcap the lower the volatility? because you need more and more money to even influence said coin.

I think generally this is true, but it should be cause for alarm that as large as btc's marketcap is, it can still crash 25% in a matter of hours. It's a lot harder to cause massive price spikes the larger it gets, but I think it is always easier to have volatility in a downward trajectory.

I see that unconfirmed transactions has spiked to around 100k, so I wonder if that has anything to do with the flash crash. It seems the network is under spam attack again, with wildly higher transactions than is typical.

[player514]

No theory at all, whales are just taking their money now. After a quick dumped, look at the charts again now as the price of bitcoin is now starting to be fueled and pumping again. And as you will notice, majority of the crypto's are on down so these whales are seriously simply taking their profits.

I find the system very funny. Whales pull out and they drop the price which is what they want right? They want to be at the forefront of sales, so when they do sell, they get the most and the price for BTC drops. Which means that this opens up a whole new opportunity for them to purchase again because the price is low again. They want to max their profits out so they buy low sell high, but in the process, they create the next cycle as well.

[BartS]

FLASH is the proper description for it but no panic Bitcoin is back on track.
I think we are going to see this far more regularly. Someone posted in a
different thread that as the price gets higher the volatility will increase......
or something of that nature.

isn't it just the opposite? The larger the marketcap the lower the volatility? because you need more and more money to even influence said coin.

But that is only true if you are holding dollars, whales are holding bitcoins so it does not matter if the price of bitcoin is very high in terms of dollars they are still holding bitcoin which means that they still have enormous power to influence the price no matter how big is the market cap, they know this and this is why they refuse to sell and to not buy again since they will lose their power.

[riderinred]

FLASH is the proper description for it but no panic Bitcoin is back on track.
I think we are going to see this far more regularly. Someone posted in a
different thread that as the price gets higher the volatility will increase......
or something of that nature.

isn't it just the opposite? The larger the marketcap the lower the volatility? because you need more and more money to even influence said coin.

But that is only true if you are holding dollars, whales are holding bitcoins so it does not matter if the price of bitcoin is very high in terms of dollars they are still holding bitcoin which means that they still have enormous power to influence the price no matter how big is the market cap, they know this and this is why they refuse to sell and to not buy again since they will lose their power.

Old whales will retain their marketpower, I agree. But for new whales it will be very hard to accumulate this kind of power on the market. like the old whales have.
I think it will be an interesting journey and hope that BTC first recovers from that Nightmare-4h-candle and then a slow bleeding starts, so Alts have a chance.
But tbh I doubt that the rallye is over yet.

[meldrio1]

maybe big investors sold their bitcoins but don't worry investors will invest again after that dump it will back to $11,000 the price of bitcoin soon.

[creeps]

No theory at all, whales are just taking their money now. After a quick dumped, look at the charts again now as the price of bitcoin is now starting to be fueled and pumping again. And as you will notice, majority of the crypto's are on down so these whales are seriously simply taking their profits.

Indeed, and some people are just selling on panic. But still I believe that this is just the correction and bitcoin starting to pump now. Just Hold because this is not the end, this is just a start of a bright future.

[bribed]

Wow, I didnt realized it dropped this low. What I read in another thread was, that one guy sold all his BTC for $10 each by mistake and this shall have caused the "dip" if we want to call it like that. Not sure if this is true though.

[Dart18]

A group may have decided to withdraw for now. But it is okay.
Now we knew bitcoin could go that way and could also reach heights like that.
We have hope now that another day will come and it will hit back to that price.

That is still good news. This fight aint over. Still hodl.

[Teraboy]

November 29, 2017: bitcoin falls from around $11,400 to around $8,600 in about four hours. That's a flash crash if I've ever seen one. 24.5% decline, then a sharp movement back up to about $10,000 45 minutes later. The volatility is extreme, even by crypto standards. In the midst of that, I was seeing a bid ask spread over $200 where I am accustomed to it being under $1 much of the time.




Any theories on the cause?

A flash pump and tht means about flash crash too. The market can be manipulated by the whale. if you are seeing about the fact that the whale can make the market becomes panic.
Just dump a lot of your bitcoin and the market will give a panic reaction. Some expert already predicted about the flash crash.
Bitcoin hasn't a good support line.

[starblocks]

This Coindesk article doesn't provide many clues except possible overloaded exchanges and congestion: https://www.coindesk.com/bitcoin-price-falls-1000-minutes-erase-24-hour-gains/

There still doesn't appear to be a downtrend yet despite this

I'm curious to see where it goes this week!

[Siopao]

Its maybe the whales who holds a lot of bitcoin, getting their profit from the great pump that happened. Causing the value to dip. Btc user qho holds large bitcoin can really affect and dictate the price in just one move. Well, that's the price they gey for being the pioneer snd thrle ones who believe and bet in the industry.

[palle11]

This Coindesk article doesn't provide many clues except possible overloaded exchanges and congestion: https://www.coindesk.com/bitcoin-price-falls-1000-minutes-erase-24-hour-gains/

There still doesn't appear to be a downtrend yet despite this

I'm curious to see where it goes this week!

I mean the price is still skyrocketing without no breaks since a month now. This is really stunning.

The price mark for this year has been reached, yet bitcoin is crossing bounds. I do believe that next year is going to be an explosion in price because awareness is going to be higher and many more investors coming in plus new manipulations.

[Ilegendph]

Its maybe the whales who holds a lot of bitcoin, getting their profit from the great pump that happened. Causing the value to dip. Btc user qho holds large bitcoin can really affect and dictate the price in just one move. Well, that's the price they gey for being the pioneer snd thrle ones who believe and bet in the industry.

I have the same theory with you, maybe this investors has a limit of about $11,000/btc to sell their bitcoins and earn profits after the big dump those people who are waiting for the bitcoin to have lower price buy huge volume of btc so that the price goes normal again. This could only happen in two ways, one if the number of holding bitcoin that has the same goal or target of $11,000/btc is huge in enough to dump it to $8,400 and two if there is a billionaire invested in btc and bought it in large volume sold his btc.

[okala]

November 29, 2017: bitcoin falls from around $11,400 to around $8,600 in about four hours. That's a flash crash if I've ever seen one. 24.5% decline, then a sharp movement back up to about $10,000 45 minutes later. The volatility is extreme, even by crypto standards. In the midst of that, I was seeing a bid ask spread over $200 where I am accustomed to it being under $1 much of the time.




Any theories on the cause?

The simple cause for this is speculation and comments made by some bankers yesterday! Some of us has make some speculations here that bitcoin is going to clash, bitcoin is going to drop below  $8,000 and we still expect people not to sell out of panic. Yesterday one top banker make some attacking comments on bitcoin and said it is going to clash on BBC and there is no way this comment will not affect people decisions on bitcoin.