The crypto market’s ‘flash crash’ of this weekend, which some have claimed was a massive pump and dump scam by a group of whale traders from California, was unforeseen for most investors.
In the span of two hours, Bitcoin dropped from about $9,700 to $8,100, a rapid drop of some 15%.
Data from Cryptodiffer suggests that the grouped value of all liquidations on the various exchanges accounted for $1,2 billion, with most of it at Huobi and Bitmex.
Furthermore, Coinbase suffered an outage during the heavy selloff, which many lambasted as it is not the first time this happens on the platform.
Most on social media are comforting each other with the knowledge that crypto enthusiasts are meant to ‘HODL’ onto their investment and, importantly, that this is only the second biggest crash of the year, after the 12 March ‘Black Thursday’ one.
One crypto trader said it best when he claimed earlier last week that the economic narrative of holding Bitcoin as a hedge against inflation was gaining ground, that the halving was coming shortly and that the most famous crypto has shown incredible strength already since the march lows.
Lastly, although Bitcoin suffered a wild ride this weekend, Satoshi’s invention is still up for the year. Same cannot be said of the stock markets of course.
One crypto enthusiast responded to Nouriel Roubini calling the flash crash a pump and dump scam, by showing off a mug that carries a tweet from him dated 2013. In that one, Dr. Doom says the same about Bitcoin ‘dropping 40% to $58’. It has gained quite significantly since then.