Thursday, June 22, 2017

E-Currency Crashes From $319 to 10 Cents, Then Rebounds

Welcome to the modern day version of the Tulip bubble.

The price of ethereum crashed as low as 10 cents from around $319 in about a second on the GDAX cryptocurrency exchange on Wednesday, a move that is being blamed on a "multimillion dollar market sell" order, reports CNBC.

Ethereum is an alternative digital currency to bitcoin and had been trading as high as $352 on Wednesday. It has since rebounded from its flash-crash lows to trade to about $325 on the GDAX exchange.

Adam White, the vice president of GDAX which is run by U.S. firm Coinbase, posted on the exchange's blog, outlining what took place at around 12:30 p.m. PT on Wednesday. According to White, the multimillion dollar market sell order resulted in a number of orders being filled from $317.81 to $224.48.

As the price continued to fall, another 800 stop loss orders and margin funding liquidations caused ethereum to trade as low as 10 cents.


1 comment:

  1. Actually that sounds like a brilliant move, put limit trades in well below market price and grab insane percentage gains when the prices bounce back. I wish I could have bought a ton of it at 10 cents. Then immediately turned around and sold it and retired.