As known from:
CoinWireICOBenchCoinCodex
Write a Review
Write a Review
Nothing Found
Contains commercial content
TradersBest.com / Bitcoin Hit by Flash Crash

Bitcoin Hit by Flash Crash

Publish Date: 07/12/2021

Nearly $12,000 was wiped off the value of Bitcoin over the weekend as investors’ confidence in the cryptocurrency was shaken. Prior to the weekend ‘flash crash’ Bitcoin had enjoyed a total market value of $1.1 trillion but the crypto settled at below $50,000 following the mass sell-off. It comes at a time just after Bitcoin had enjoyed record highs and perfectly illustrates just how volatile the world’s biggest cryptocurrency still is.

It was a bruising weekend for Bitcoin with its value down to reach a lowly $42,000 which is a level not seen since the start of October 2021. Such a fall was intensified by the fact that the crypto had hit a record value of $69,000 in November. What was all the more alarming was the fact that Bitcoin’s value dropped a further 5% on the Monday following the flash crash of the weekend.

The market lost confidence as a result of a resurgence of Covid-19 cases in Europe as well as the threat that the new Omicron variant holds over the world. This was doubled up following a November jobs report in the US that showed that employment levels are taking longer to recover than initially expected.

As such, there has been a noted trend away from riskier assets like cryptocurrencies, plus the lower trading liquidity of cryptos is another big reason behind the fall. This has caused many investors to predict that Bitcoin could have a tougher fourth-quarter compared to what has otherwise been a largely positive year.

Bitcoin started 2021 at a value of $21,493 and now sits comfortably at double that amount. However, it hasn’t been a perfect year with the crypto suffering massive falls in late spring as the US grappled with the Delta variant. Now with fears that the Omicron variant could wreak havoc with the recovery of the economy, there’s every chance that Bitcoin could be one of the new casualties of the virus.

Other cryptos hit by the drop in confidence

Bitcoin wasn’t the only crypto to be hit by the market jitters. Ethereum, the next largest cryptocurrency, also saw its value plummet by 5% to trade at a price of $4,015. Solana was even harder hit with a staggering 9% drop in value, despite many predictions that it could overtake both Bitcoin and Ethereum as a result of its cost-effectiveness and its ultra-fast blockchain technology.

All of which has reaffirmed the perception that cryptocurrencies are simply too volatile to be seen as a serious investment. The sudden price drop will have shocked investors at JP Morgan as the Wall Street bank recently broke ranks to use Bitcoin as a hedge against inflation. However, it’s still worth noting that the cryptocurrency was only worth $320.19 in 2014 and if investors can hold onto the asset despite the momentary volatility, it could still be a shrewd investment.

Read Also
Warnings of ‘Crypto Winter’ Hit Bitcoin Price
Bitcoin suffered a shocking fall in value over the weekend that saw ...
Apple Briefly Becomes First $3 Trillion Company
Apple briefly became the world’s first $3 trillion dollar company on Tuesday. ...
Google’s Alphabet Hits $2 Trillion Market Value
Last week saw Alphabet - Google’s parent company - hitting a $2 ...
Bitcoin Falls Below $60,000
This week saw the value of Bitcoin taking a dramatic plunge to ...
Bitcoin Price Plummets Due to Latest Crypto Crash
The price of Bitcoin has again fallen as it dropped to a ...
Latest News
Study: how do finances shape our love life?
Do we find someone less attractive if they're ...
Is FTX Bankrupt? 
The crypto market has seen a drastic change ...
Disney Shares Jump 6% After Positive Earnings Report
A booming subscriber base and the return of ...
Alibaba Posts Flat Revenue Growth But Stock Still Jumps 6%
Chinese ecommerce giant Alibaba posted its first earnings ...
Intel Stock Slumps Over 8% Following Weak Earnings Report
Chip-maker Intel suffered a disastrous end to last ...
Top Forex Sites
Ally Invest
Ally Invest
Ally Invest Review
4.8/5
Webull
Webull
Webull Review
4.6/5
Kraken
Kraken
Kraken Review
4.3/5
Nadex
Nadex Review
3.6/5
Interactive Brokers
Interactive Brokers Review
4.8/5
Receive the latest trading news by email + our free eBook
Crypto eBook EN
Nobody is born a trading expert. Register now to receive the Ultimate Guide to Trading Cryptocurrencies in 2022 (and beyond), and receive the TradersBest.com newsletter with the latest market news and broker reviews!.

By registering, I agree that TradersBest.com may send me newsletters via email at regular intervals. This consent can be revoked at any time.
Receive the latest trading news by email + our free eBook
Nobody is born a trading expert. Register now to receive the Ultimate Guide to Trading Cryptocurrencies in 2022 (and beyond), and receive the TradersBest.com newsletter with the latest market news and broker reviews!.

By registering, I agree that TradersBest.com may send me newsletters via email at regular intervals. This consent can be revoked at any time.
Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.

Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.

21+NCPG
Close
×
Your Promo Code:
The bonus offer of was already opened in an additional window. If not, you can open it also by clicking the following link:
Visit Site