Bitcoin price crash sees hundreds of billions wiped from crypto market
The price of bitcoin has crashed on Wednesday morning, dropping by thousands of dollars in the space of just a few minutes.
The cryptocurrency fell below $59,000 following the flash crash, down more than $5,000 from the levels it was trading at earlier this week.
The latest price drop comes less than a week after BTC hit a new all-time high of close to $67,000.
Blockchain data suggests today’s price crash is partly fuelled by long-term holders taking some profits, which typically happens after bitcoin hits a new all-time high.
Any sudden dip in price of more than a couple of per cent can trigger panic selling from crypto investors, though severe dips also typically attract new buyers.
“Am I the only one who gets excited by little mini dips in a bull market?” one investor wrote on Twitter . “Just buy the dip. Little flash sale.”
Another wrote : “Buy the dip, thank me later.”
Flash crashes seen earlier this year were followed by record-breaking bounce backs, with some crypto analysts predicting new all-time highs before the end of 2021 .
Several other leading cryptocurrencies also tumbled in price, with Ethereum (ether), Binance Coin, Cardano (ada), Solana (SOL) and Ripple (XRP) all falling by between 5-15 per cent.
The overall crypto market fell below $2.5 trillion – more than $200 billion down from earlier this week.
The only cryptocurrency with a market cap above $20 billion to see any gains was the meme coin Shiba Inu. The dogecoin spin-off has doubled in price in the last week and bucked market trends on Wednesday to rise a further 20 per cent.
The price surge appears to be driven by speculation that it could be listed on popular trading app Robinhood.