Published on August 19th, 2015 | by bitcoin0
Bitcoin Price Falls 14%, Following Bitfinex ‘Flash Crash’
Bitcoin’s price fell 14% in a period of just 30 minutes following a ‘flash crash’ on exchange Bitfinex yesterday night.
Bitfinex, which claims to be the most liquid exchange in the world, experienced the ‘flash crash’ following a large sell order said to be worth 10,000 BTC ($2.3m).
Alongside a regular buy/sell orderbook, Bitfinex offers margin trading, meaning users can borrow funds from the platform’s lenders – known as ‘peer liquidity providers’ – at a rate of interest to trade bitcoin.
However, a bitcoin market maker who wished to remain anonymous said flash crashes are not unique to markets with margin trading.
Meanwhile, the current uncertainty and “public bickering” over the Bitcoin XT fork is bound to affect the price negatively, he added.