What is a flash crash in Bitcoin, and why does it matter?
Bitcoin’s price can collapse in minutes during a flash crash. Learn about the market dynamics and what causes prices to plummet, wiping billions off the BTC market.
A Bitcoin flash crash is a sudden, sharp plunge in the market price of BTC that only lasts a short period of time before prices start to normalize.
The appearance of unique market conditions causes a jolt in the leading cryptocurrency’s market price. Typically, the reason behind a flash crash is a large group of sellers (called whales) deciding to sell Bitcoin (BTC) suddenly and flood the market with supply. This overwhelms buyers and can erase billions from the market in minutes.
