Pre-Halving Bitcoin Flash Crash Sees BTC Price Drop 12% in 15 Minutes

Siamak Masnavi

According to data from CryptoCompare, during a span of 15 minutes, between 00:05 UTC and 00:20 on Sunday (May 10), which is approximately 48 hours before Bitcoin's next (third) halving, the average price of Bitcoin across the exchanges tracked by the CryptoCompare Index dropped from $9,483 to $8,327, i.e. a loss of 12.2%.

BTC-USD 24 Hour Chart 2 on 10 May 2020.png

Over on Coinbase, the crash was slightly less severe, with the Bitcoin price dropping from $9,480 to $8,434 during this same 15-minute period:

Coinbase BTC-USD 24 Hour Chart on 10 May 2020.png

There were complaints on Twitter from traders, such as the one below, who found that Coinbase was having some issues coping with this kind of price volatility:

Popular crypto analyst Josh Rager had this to say roughly five minutes after the crash:

And around one hour later, Scott Melker, a crypto trader at Texas West Capital, said that after the "real deal selling we just witnessed" he wanted to wait a bit to see how things shake out:

Crypto analytics platform Santiment noticed a huge spike in the number of mentions of Bitcoin across social media platforms shortly after the flash crash:

As usual, two of Bitcoin's harshest critics, Professor Nouriel Roubini (aka 'Dr. Doom") and gold bug Peter Schiff, could not wait to take delight in Bitcoin's temporary misfortune:

As for where we go from here, Rager says that the good news is that "we're holding steady at $8,600", and that if "we can hold $8,600, that's going to be a key." He goes on to say that if Bitcoin can hold here, then bounce up to $9,150, "it'll probably continue to move on up." However, if Bitcoin rejects the $9,100 or $9,000 level, "it's probably going to continue on back down from there."

Lastly, with regard to the altcoins, with the exception of the stablecoins (such as Tether), in general, they have not been spared from this carnage, suffering comparable losses against USD.

For example, Ethereum (ETH), XRP, Bitcoin Cash (BCH), Litecoin (LTC), and Binance Coin (BNB) currently down 10.98%, 11.02%, 12.20%, 12.36%, and 11.94% respectively.

Featured Image by "Pexels" via Pixabay.com