Around 14:30 UTC (10:30 EDT) on Tuesday (June 2), the price of Bitcoin fell from around $10,150 on BitMEX all the way down to $8,600 in a span of about 15 minutes, as you can see in the 24-hour price chart below:
This drop to $8,600 was at least $700 greater than the drop on othe exchanges such as Binace, Coinbase, Huobi, and OKEx, as macro-economist and crypto trader Alex Krüger pointed out in the tweet below:
Bitcoin doing bitcoin things today.
Bitmex low 8600
OKEX low 9300
Huobi low 9350
Coinbase low 9300
Binance low 9400
I did not round those numbers. pic.twitter.com/UIm4lWPBeq
— Alex Krüger (@krugermacro) June 2, 2020
The above tweet prompted Binance Co-Founder and CEO Changpeng Zhao (aka “CZ”) to send out the following reply:
Liquidity saves you money. https://t.co/7bDZ6HGSA9
— CZ Binance 🔶🔶🔶 (@cz_binance) June 2, 2020
Crypto journalist/research Zack Voell made an interesting observation regarding what had happened to Bitcoin bulls and bears on BitMEX today:
Bears and bulls getting whipsawed on BitMEX. pic.twitter.com/7vRFuRZKV0
— Zack Voell (@zackvoell) June 2, 2020
Crypto analyst/trader Josh Rager pointed out that this kind of volatility demonstrates the importance of placing stop-loss orders:
For those of you new to trading, whether trading spot or derivatives…
It's these type of candles and volatility with Bitcoin price, that shows why you should use a stop-loss
You just don't have enough time to react to price moves like this and your funds quickly disappear pic.twitter.com/XGrCxA1WzP
— Josh Rager 📈 (@Josh_Rager) June 2, 2020
This is what popular technical analyst ‘Cred” had to say about Bitcoin’s recent price action:
Still within daily range ($8600 support, $10000 resistance).
Testing midrange + monthly S/R at $9300s.
Failed breakout usually leads to opposite boundary, so I'll look to sell the underside of $9300s if it fails.
Boring, but watching developments at $9300s before acting.
— Cred (@CryptoCred) June 2, 2020
Blockchain analytics startup CryptoQuant says that today’s crash may have been caused by Bitcoin whales who moved their coins to Binance and BitMEX a few hours before the start of today’s Bitcoin flash crash:
— CryptoQuant (@cryptoquant_com) June 2, 2020
Currently (as of 16:00 UTC on June 2), according to data from CryptoCompare, Bitcoin is trading at an average price of $9,469, down 0.71% in the past 24-hour period:
Of course, those who are true Bitcoin HODLers are likely to see today’s Bitcoin flash crash as nothing more than another opportunity to buy more Bitcoin below the $10K level.
Here is Scott Melker, a crypto trader at Texas West Capital, with his humorous take on today’s Bitcoin flash crash:
BREAKING NEWS! BITCOIN DUMPS TO LEVELS NOT SEEN SINCE YESTERDAY!
— The Wolf Of All Streets (@scottmelker) June 2, 2020