Seeking Alpha

Flash crash on Bitcoin exchange sends price plunging

  • Under pressure early at about $500, the price of bitcoin on the BTC-e platform suddenly plunged to $309, where just three trades took place. In the three minutes around those trades, there were 1,554 individual trades - a large number considering there are entire days when volume is around 5K.
  • Prices have since recovered, with the last price being $458.77, down 6.9% on the session.
Comments (3)
  • Samuel Cahn
    , contributor
    Comment (1) | Send Message
     
    To quote the linked article:
    BTC-e is an opaque exchange – It’s not clear whether it’s located in Bulgaria or Cyprus, and the people running it keep themselves out of the public eye. The site notes its located in a “European time zone (GMT +2), which includes both locales. Our colleagues at MarketWatch described it as a “black hole” in a February profile, even as it became one of the biggest of the bitcoin exchanges.

     

    All the more reason to carefully vet exchanges before trading on them.
    18 Aug, 04:33 PM Reply Like
  • King Rat
    , contributor
    Comments (654) | Send Message
     
    All the more reason to avoid bitcoin altogether. As with NASCAR its origins are with self-alleged misfits and organized crime. On the other hand, NASCAR provides entertainment value for millions of people. Bitcoin may be great for miners to sell to "investors" but there is no value for investors. Even if every merchant in the world accepted bitcoin, bitcoin adds no value for consumers. Until bitcoin provides a unique value or utility to consumers it will remain merely a gamble that the street price will rise.
    18 Aug, 05:23 PM Reply Like
  • Itchygonads
    , contributor
    Comments (31) | Send Message
     
    "In three minutes around those three $309 trades – from 7:42-7:44 a.m., there were 1,554 individual trades worth a total of 1,273 BTC"

     

    That sounds like a setup.
    1500+ trades in 3 mins when on a normal day the average volume being around 5k.

     

    "In other words, somebody took a bath today, and on the other end, somebody, ahem, cleaned up."

     

    Yeah and I wonder who did clean up...
    18 Aug, 05:19 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|