Bitcoin (BTC) futures traders on the CME were hit with a surge of volatility last week after a massive sell order resulted in a flash crash.
In a matter of seconds, Bitcoin dropped over 10% from $9,400 to $8,400 in what looks to be an algorithm-driven move that was not reflected in any other spot or futures markets.
The flash crash was the result of around 400 BTC contracts sold, which was enough downward pressure to drive Bitcoin to rapid lows. However, as the chart indicates, investors (or algos) saw the opportunity and quickly brought the price back up to its previous level.
The question at the time was whether or not this flash crash would qualify as filling the gap left open in the $8,800 range during last month’s massive 2-day rally that saw Bitcoin surge from $7,300 to as high as $10,500. However, it seems now that the flash crash was more of a predictor of things to come, as Bitcoin is now down to $8,700.
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More: CME Bitcoin Futures Flash Crash to Fill $8.5K ‘Gap’
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Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.
