Topic: Exchanges Freeze as Cryptocurrencies Flash-Crash (Read 265 times)
We do not called this a crash because it is always expected. Investing or trading in bitcoin and even altcoins is not for chicken-hearted individual.
I think it might be connected with their security features. If too many coins are sold at the same time for fiat they have to get additional coins from the cold wallets... the supply runs dry as they can not act fast enough / the thresholds are too tight.
Bitcoin is being adopted by more and more people every single day. With the mainstream entry of CME group, many people have actually started researching about bitcoin and thinking to invest in it or have invested in it. Majority of the bitcoin exchanges are not strong enough to handle such huge numbers of requests and that is the reason why Kraken and Bitfinex was a malfunctioning. Coinbase went in to maintenance mode yesterday to increase the server power to handle more trade volumes and new account registrations.
So that is normal for bitcoin to queue up a large volume of unconfirmed transaction due to the increased network usage. Currently around 74k transactions are unconfirmed which is higher than the normal volume.
Just to give you an hypothetical example, on November 1st this year, the number of blockchain wallet users were 18,201,731. And on November 29th, the number of blockchain users went up to 19,302,078. That's 1.1 million+ users in just 28 days. So now the wallet providers and exchanges are seeing the actual picture and also the future potential. The crash was just a learning for the future. Because bitcoin price will keep on increasing and so as the number of users. Exchanges and wallet service providers will have to be prepared for that.
So that is normal for bitcoin to queue up a large volume of unconfirmed transaction due to the increased network usage. Currently around 74k transactions are unconfirmed which is higher than the normal volume.
Just to give you an hypothetical example, on November 1st this year, the number of blockchain wallet users were 18,201,731. And on November 29th, the number of blockchain users went up to 19,302,078. That's 1.1 million+ users in just 28 days. So now the wallet providers and exchanges are seeing the actual picture and also the future potential. The crash was just a learning for the future. Because bitcoin price will keep on increasing and so as the number of users. Exchanges and wallet service providers will have to be prepared for that.
Bitcoin has often been called "the honey badger of money" for its resilience- but the market price is extremely fragile. Granted, BTC has had previous climbs and drops like this, but with extremely high, psychologically loaded price levels achieved, the correction- or crash- was even more worrisome.
The peak price caused BTC owners to try to move their coins to an exchange, causing another large transaction backlog. For about three hours, the Gemini trading platform was in crisis mode, trying to deal with the influx of transactions and orders.
Users shared stories of orders not getting filled, especially buying at the lower price. The five-hour event, called "the crashening", affected altcoins as well, with some accidental drops to very low prices, as low as $10 for Ethereum at one point and $3 for NEO.
A Telegram group was formed to discuss the strange behavior of the Bitfinex page that did not allow the normal closing and placing of orders, and led to negative account balances: As Bitcoin prices continue to drop, and there are more than 63,000 transactions pending, the selling may continue in the next few days, with prices of $8,000 predicted for Bitcoin, but buyers still ready to buy in case of a deeper correction. At the moment, Bitfinex trades BTC at $10,145, while the Korean markets still hold above $11,000, a curious disparity.
The peak price caused BTC owners to try to move their coins to an exchange, causing another large transaction backlog. For about three hours, the Gemini trading platform was in crisis mode, trying to deal with the influx of transactions and orders.
Users shared stories of orders not getting filled, especially buying at the lower price. The five-hour event, called "the crashening", affected altcoins as well, with some accidental drops to very low prices, as low as $10 for Ethereum at one point and $3 for NEO.
A Telegram group was formed to discuss the strange behavior of the Bitfinex page that did not allow the normal closing and placing of orders, and led to negative account balances: As Bitcoin prices continue to drop, and there are more than 63,000 transactions pending, the selling may continue in the next few days, with prices of $8,000 predicted for Bitcoin, but buyers still ready to buy in case of a deeper correction. At the moment, Bitfinex trades BTC at $10,145, while the Korean markets still hold above $11,000, a curious disparity.
It sounds like it was a shitshow yesterday during the drop. Most of the big exchanges folded under the pressure, I wonder if they were DDOS'd too, or just couldn't handle the traffic.
It also looks like there were some margin calls, which isn't too surprising given the depth of the fall!
I wouldn't read too much into it going forward. That Bitfinex is in troube is already well known, I doubt Coinbase and Stamp are though.
There are frequent flash crashes, knowing bitcoin we'll see a new ATH in the next day or 2!
Bitcoin has often been called "the honey badger of money" for its resilience- but the market price is extremely fragile. Granted, BTC has had previous climbs and drops like this, but with extremely high, psychologically loaded price levels achieved, the correction- or crash- was even more worrisome.
The peak price caused BTC owners to try to move their coins to an exchange, causing another large transaction backlog. For about three hours, the Gemini trading platform was in crisis mode, trying to deal with the influx of transactions and orders.
Users shared stories of orders not getting filled, especially buying at the lower price. The five-hour event, called "the crashening", affected altcoins as well, with some accidental drops to very low prices, as low as $10 for Ethereum at one point and $3 for NEO.
A Telegram group was formed to discuss the strange behavior of the Bitfinex page that did not allow the normal closing and placing of orders, and led to negative account balances: As Bitcoin prices continue to drop, and there are more than 63,000 transactions pending, the selling may continue in the next few days, with prices of $8,000 predicted for Bitcoin, but buyers still ready to buy in case of a deeper correction. At the moment, Bitfinex trades BTC at $10,145, while the Korean markets still hold above $11,000, a curious disparity.
The peak price caused BTC owners to try to move their coins to an exchange, causing another large transaction backlog. For about three hours, the Gemini trading platform was in crisis mode, trying to deal with the influx of transactions and orders.
Users shared stories of orders not getting filled, especially buying at the lower price. The five-hour event, called "the crashening", affected altcoins as well, with some accidental drops to very low prices, as low as $10 for Ethereum at one point and $3 for NEO.
A Telegram group was formed to discuss the strange behavior of the Bitfinex page that did not allow the normal closing and placing of orders, and led to negative account balances: As Bitcoin prices continue to drop, and there are more than 63,000 transactions pending, the selling may continue in the next few days, with prices of $8,000 predicted for Bitcoin, but buyers still ready to buy in case of a deeper correction. At the moment, Bitfinex trades BTC at $10,145, while the Korean markets still hold above $11,000, a curious disparity.
bitcoin has turned to an asset .. instead of calling it a bubble people should start adopting it and try to make it a gloabal currency even with tax norms in such coutries which feels tax norms are madatory
Bitcoin has often been called "the honey badger of money" for its resilience- but the market price is extremely fragile. Granted, BTC has had previous climbs and drops like this, but with extremely high, psychologically loaded price levels achieved, the correction- or crash- was even more worrisome.
The peak price caused BTC owners to try to move their coins to an exchange, causing another large transaction backlog. For about three hours, the Gemini trading platform was in crisis mode, trying to deal with the influx of transactions and orders.
Users shared stories of orders not getting filled, especially buying at the lower price. The five-hour event, called "the crashening", affected altcoins as well, with some accidental drops to very low prices, as low as $10 for Ethereum at one point and $3 for NEO.
A Telegram group was formed to discuss the strange behavior of the Bitfinex page that did not allow the normal closing and placing of orders, and led to negative account balances: As Bitcoin prices continue to drop, and there are more than 63,000 transactions pending, the selling may continue in the next few days, with prices of $8,000 predicted for Bitcoin, but buyers still ready to buy in case of a deeper correction. At the moment, Bitfinex trades BTC at $10,145, while the Korean markets still hold above $11,000, a curious disparity.
The peak price caused BTC owners to try to move their coins to an exchange, causing another large transaction backlog. For about three hours, the Gemini trading platform was in crisis mode, trying to deal with the influx of transactions and orders.
Users shared stories of orders not getting filled, especially buying at the lower price. The five-hour event, called "the crashening", affected altcoins as well, with some accidental drops to very low prices, as low as $10 for Ethereum at one point and $3 for NEO.
A Telegram group was formed to discuss the strange behavior of the Bitfinex page that did not allow the normal closing and placing of orders, and led to negative account balances: As Bitcoin prices continue to drop, and there are more than 63,000 transactions pending, the selling may continue in the next few days, with prices of $8,000 predicted for Bitcoin, but buyers still ready to buy in case of a deeper correction. At the moment, Bitfinex trades BTC at $10,145, while the Korean markets still hold above $11,000, a curious disparity.
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