Bitcoin has been plagued by numerous dips that have left the price of the asset at one-month lows. Monday was harsh for the cryptocurrency as the close of the weekend attracted with its low momentum in the market. This, in turn, led to the market experiencing a downtrend. Most notable was the price of bitcoin actually dropping into the $42,000 price range.
While the marketplace handled this, a record flash crash took place on the trading platform Pyth Network. The crash was so significant that it saw the price of bitcoin lose almost 90% of its current value. The cost crash lasted for roughly 2 minutes. Driving the cost of bitcoin down to as low as $5,400 on Monday. The crash happened between the BTC <> USD pair on the Pyth Network. The Solana-based option likewise saw the self-confidence period (4 times the property reported cost) for bitcoin drop to $21,623.
Pyth Network acknowledged the crash on their Twitter account, where they assured their users that they were working to figure out what caused this. “Engineers are continuing to investigate the cause and a full report is in the works,” it stated.
Why Did Bitcoin Crash So Much?
It is still not clear what the reason behind the crash was. So far, there seem to be no other pairs affected by the crash. And no other cryptocurrencies have actually been reported to have actually suffered the very same fate as bitcoin. The crash led to massive liquidations on the platform, which were, “unfortunately working as intended,” tweeted Bonfida.
The crash no doubt impacted a variety of Pyth Network users. The network has actually said sorry to impacted users, stating, “We’re very sorry for any hurt incurred for Pyth customers. ” And the team has asked those affected by the flash crash to reach out to the team either through Twitter or Discord. The group continues to deal with determining the reason for the crash and will produce a report of their examinations.
