In what seems like a development which is the latest blow to bitcoin prices, Bitcoin prices have slumped to its lowest level since May late last week. The decline has since been largely attributed to a worsening short-term news outlook, as well as the industry’s margin traders, though alternative theories have been proposed.
At press time, at least one notable industry analyst, along with a host of exchange users are suggesting that margin trading may have once again played a factor in today’s decline, as a flash crash observed on popular bitcoin trading platform BTC-e caused the price of bitcoin on its exchange to decline sharply to a low of $309.
That price was observed on BTC-e at roughly 07:36 (UTC), and was followed by similar declines across other major bitcoin trading platforms including Bitstamp, Huobi and OKCoin, market analysis shows. Notably, this is not the first time such a large flash crash has been observed on BTC-e. For example, this February, the price on the exchange declined nearly $500 in just over one minute.
News on Bitcoins
Data analysis shows other major exchanges soon responded to declining prices observed on BTC-e, with a sharp drop observed across their order books at roughly 07:37 (UTC). By 07:46, the price of bitcoin on Bitstamp began its decline, landing roughly $20 below its starting point to touch $462.01 and hitting a daily low price of $442 at roughly 08:51.
Major China-based Huobi and OKCoin also recorded less notable drops during this time. For example, Huobi’s price decline began at 07:37, dropping from ¥2880.1 to ¥2788.1 by 07:45. Likewise, OKCoin saw prices on its exchange fall from ¥2880.4 at 07:36 to ¥2785.3 by 07:45.
Bitcoin News Video
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Bitcoin Financial News
Major bitcoin exchanges have remained in favor of margin trading, suggesting they do their best to inform traders of the risks associated with the offerings and that they have internal safeguards to mitigate wider market damage that could result from the practice. Technews will keep you updated with all the financial news related to bitcoins.
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