Bitcoin flash crashes by $2K in 5 minutes, liquidating $600M in longs

Bitcoin (BTC) fell over $2,000 in five minutes on March 31 as a wave of volatility disrupted an otherwise calm market.

BTC/USD 1-minute candle chart (Bitstamp). Source: Tradingview

BTC sees sudden volatility

Cointelegraph Markets Pro and Tradingview showed a nightmare for long traders unfold on Wednesday, with BTC/USD suddenly dropping from $59,350 to $57,000.

At the time of writing, the losses were still mounting after the pair hit lows of $56,713 on Bitstamp. 

“Exactly Bitcoin,” trader Michaël van de Poppe reacted to what has become a familiar event on short timeframes for Bitcoin.

Previously, upside had been the focus for day traders as news from PayPal spawned a run-up to just below $60,000.

Those betting on a continuation of the bull run lost big on Wednesday, however, as the downturn liquidated long positions worth $600 million amid a 24-hour total wipeout of $1 billion.

For quant analyst PlanB, their demise was nonetheless beneficial, helping to rid the market of unwanted leverage and ensure more organic future rises. AsTitle: Bitcoin flash crashes by $2K in 5 minutes, liquidating $600M in longs
Sourced From: cointelegraph.com/news/bitcoin-flash-crashes-by-2k-in-5-minutes-liquidating-600m-in-longs
Published Date: Wed, 31 Mar 2021 09:34:44 +0100