Bitcoin Price Update - August 18th Flash Crash BTCE

When the price of any coin that we have listed falls or increases significantly, we will post a price update attempting to explain the causes and contributing factors of the price swing

Just 5 days after the flash crash on Bitfinex that brought the price down to $451, there was another flash crash this morning at 7:30 AM EST. This time it was on BTC-E.com and brought the price down to $310 before shooting back up.

BTCE

Cascading margin calls appear to be a contributing factor again, with it being amplified because BTCE does not have the same trading algorithms that protected a full-on cascade from happening on Bitfinex earlier in the week. Unfortunately, BTCE does not provide the same in depth information that Bitfinex provides so it is hard to tell at this time. We will update this page as we learn more.

It is interesting that there appear to have been two attempts in the last week to trigger a margin call cascade on two separate exchanges. There could very well be an outside actor trying to trigger a flash crash and push the price of Bitcoin down. Leveraged Bitcoin long orders are at their lowest level on Bitfinex in months, with less than $20M USD worth of orders.

BFXDATA.com

We will update this page as more information/analysis becomes available.


Disclosure:

Matt's current cryptocurrency positions:

Bitcoin, Vertcoin, Darkcoin, NXT, Monero, MaidSafeCoin, Storjcoin.


Disclaimer: This post is intended solely to provide information. As I have no knowledge of individual circumstances and technical level, readers are expected to complete their own due diligence before proceeding with anything mentioned in this article. The topics discussed in this post are advanced and readers proceed at their own risk. Readers are expected to complete their own due diligence before purchasing or selling anything mentioned or recommended.