What Could Have Caused Bitcoin to Flash Crash On Sunday?

wxa7115

hero member

Activity: 2814

Merit: 734

Bitcoin is GOD

Quote from: milewilda on April 27, 2021, 03:43:11 PM

Quote from: wxa7115 on April 27, 2021, 11:08:42 AM

Quote from: Oceat on April 23, 2021, 05:53:26 PM

For me, it's not bearish yet, there are circumstances that actually affect the crypto market and one of the reason is the hashrate drop. This massive correction may be normal or common to someone but with the that actual drop after Bitcoin reached the $64k ATH. I think someone is dumping their holdings that resulted in this huge decline in the market.

While some news are adding fuel to the fire to make the market worst this is what the journalist doing these days to catch attention, they need to make FUD to the current situation.

And the evidence is proving you right, people rush to make all kind of conclusions about why the market behaves the way it does and why the price went down not realizing this tells us more about themselves than about the market.

This is nothing more but a trick of the whales, they are trying to shake out the weak hands and get their bitcoin, if you sell now then you are going to miss on the explosive growth that will come at the end of the year, so people need to be strong and hold their coins no matter what because if the do not then they will see bitcoin reaching new heights and they will have no bitcoin to take advantage of the situation at the time.

Market had always been like this and if you've been here for a while then you can determine on what are those movement been made of, you can eventually point out some sort
of manipulative movement if you do really see and check the fundamentals.It might a little bit lit but its there and as a small fry investor then you should know on how to ride
with the waves for your own benefit rather than on trying to go against with it.There are really news that do pops out from nowhere unexpectedly then after that the
market do mainly reacts but its not guaranteed thats why you should really be that attentive on what further actions you would do.

And there is no reason to think this is going to change, whales exist in any market and they can move the market as they please, in fiat markets there are some restrictions to their movements but if several of them act at the same time they can still move the markets.

However in a market that is unregulated as this one their power can be exercised more freely and they can take advantage of it in an easier way, so people need to always look at the market and think if what we are seeing makes sense, and if it does not then most likely we are in a movement where the whales are manipulating the market to their benefit, and what better evidence this is the case than the crash we saw and the fact bitcoin recovered almost immediately proving this was a movement of the whales to scare people out and get their coins for cheap.

dautuonline

newbie

Activity: 32

Merit: 0

Quote from: BITCOIN4X on April 24, 2021, 02:07:43 PM

Quote from: DrBeer on April 24, 2021, 07:11:47 AM

Already in many sources they explain:
1. Power outages in the Chinese province of Xinjiang, which led to the loss of many industrial miners from the network, began on Friday, but this effect fully manifested itself later.
2. At the same time, there were still unconfirmed rumors that US regulators may start an investigation into unnamed large financial institutions for money laundering in cryptocurrencies. This led to a panic in the market and a massive liquidation of positions on the exchanges. Bitcoin was above $ 62,000 on Saturday morning, and set a local low of about $ 51,500 early on Sunday morning.

Two reason that might be confirmed as the cause of the decline in bitcoin price this week. But for whatever reason, I don't think bitcoin need good news or bad news to go up or down as it's a free market and it's up to the trader himself. The trader panic lasted for a moment before everything recovered.

binance also maintained at the same time after the incident. a certain conspiracy theory

milewilda

legendary

Activity: 3094

Merit: 1127

Quote from: wxa7115 on April 27, 2021, 11:08:42 AM

Quote from: Oceat on April 23, 2021, 05:53:26 PM

For me, it's not bearish yet, there are circumstances that actually affect the crypto market and one of the reason is the hashrate drop. This massive correction may be normal or common to someone but with the that actual drop after Bitcoin reached the $64k ATH. I think someone is dumping their holdings that resulted in this huge decline in the market.

While some news are adding fuel to the fire to make the market worst this is what the journalist doing these days to catch attention, they need to make FUD to the current situation.

And the evidence is proving you right, people rush to make all kind of conclusions about why the market behaves the way it does and why the price went down not realizing this tells us more about themselves than about the market.

This is nothing more but a trick of the whales, they are trying to shake out the weak hands and get their bitcoin, if you sell now then you are going to miss on the explosive growth that will come at the end of the year, so people need to be strong and hold their coins no matter what because if the do not then they will see bitcoin reaching new heights and they will have no bitcoin to take advantage of the situation at the time.

Market had always been like this and if you've been here for a while then you can determine on what are those movement been made of, you can eventually point out some sort
of manipulative movement if you do really see and check the fundamentals.It might a little bit lit but its there and as a small fry investor then you should know on how to ride
with the waves for your own benefit rather than on trying to go against with it.There are really news that do pops out from nowhere unexpectedly then after that the
market do mainly reacts but its not guaranteed thats why you should really be that attentive on what further actions you would do.

JimboToronto

legendary

Activity: 4200

Merit: 4887

You're never too old to think young.

Idiot leverage gamblers were being liquidated.

wxa7115

hero member

Activity: 2814

Merit: 734

Bitcoin is GOD

Quote from: Oceat on April 23, 2021, 05:53:26 PM

For me, it's not bearish yet, there are circumstances that actually affect the crypto market and one of the reason is the hashrate drop. This massive correction may be normal or common to someone but with the that actual drop after Bitcoin reached the $64k ATH. I think someone is dumping their holdings that resulted in this huge decline in the market.

While some news are adding fuel to the fire to make the market worst this is what the journalist doing these days to catch attention, they need to make FUD to the current situation.

And the evidence is proving you right, people rush to make all kind of conclusions about why the market behaves the way it does and why the price went down not realizing this tells us more about themselves than about the market.

This is nothing more but a trick of the whales, they are trying to shake out the weak hands and get their bitcoin, if you sell now then you are going to miss on the explosive growth that will come at the end of the year, so people need to be strong and hold their coins no matter what because if the do not then they will see bitcoin reaching new heights and they will have no bitcoin to take advantage of the situation at the time.

CaVO32

full member

Activity: 1848

Merit: 158

Quote from: 2double0 on April 25, 2021, 04:13:16 PM

So it is about the weekend dumps that I have always seen btc dumping a bit on Sundays but now I see it below 48k which is not good and if it goes more down to liquidate longs that were in the trades since $45k, btc has more chances of dipping back to $20k once before it goes up again as there is too much negativity about the taxes that will be levied on Americans and I heard that the pandemic situation is not good there at all, so all this is in combined breaking btc through a flash crash even now. 47k is the key area looking to be a very strong support for btc that the buyers don't let it be touched by bears. I hope btc continues its rise and does not end the show in a 2018 flash crash way.

I don't think we will go down as much as 20k. I just hope that we will not go down below 40k. But we can't do anything much if the market is heading that way. There are so many factors that contributed to this drop. But with the backing of financial institutions and big companies, I don't think we will see a massive drop this time. Maybe, it is just a correction because we have been enjoying too much about the rise of btc in the first quarter of this year. Let us wait and see...

2double0

legendary

Activity: 2618

Merit: 1105

So it is about the weekend dumps that I have always seen btc dumping a bit on Sundays but now I see it below 48k which is not good and if it goes more down to liquidate longs that were in the trades since $45k, btc has more chances of dipping back to $20k once before it goes up again as there is too much negativity about the taxes that will be levied on Americans and I heard that the pandemic situation is not good there at all, so all this is in combined breaking btc through a flash crash even now. 47k is the key area looking to be a very strong support for btc that the buyers don't let it be touched by bears. I hope btc continues its rise and does not end the show in a 2018 flash crash way.

beerlover

legendary

Activity: 3052

Merit: 1188

Quote from: DrBeer on April 25, 2021, 07:29:09 AM

Quite an interesting addition, to be honest I did not know about the change in tax rates! In the presence of such a factor, it becomes logical to "drain bitcoin", and in fact fix tax deductions so as not to lose on taxes in the near future. Moreover, in numerical terms, the rebound was just recorded at the border of about 15%, and the price does not fall below, so as not to "cross the line" where the losses due to the fall in the exchange rate will exceed the losses from the growth of tax deductions.

Oh hello Dr.Beer! This is Beer Lover here! Cheesy

. I do think that was the biggest reason, take your bitcoins out, turn them into cash, take out your profit, put the capital back in and pay the taxes on your profit if you want to and move on. This way they are saving a lot of money from the new tax when it comes, what better reason there could be?

And let's remember USA may not be the number one nation with crypto population right now (or maybe, I really don't know) but they are a very wealthy nation, they have most of the billionaires and they have the biggest companies, so there must be a lot of known and unknown crypto investors who will have to pay huge sums of tax, even at the current level, with the new tax hike, it will cause even more, nearly half of your profit after the first million goes to tax. Which is why it makes sense to cash out. Wish they didn't, wish the rich paid their fair share, but let's be honest if I made over a million dollars profit, I would be doing the same as well.

DarkIT

sr. member

Activity: 1176

Merit: 252

It was common phenomenon in the cryptocurrency. But their will be some reason behind it.The reason for current one is the US move over a cryptocurrency and his transaction.It was hard to predict the move of United States.The last man fear made the US people to sell at less price to get into safer side.At the last the price of bitcoin was loss upto 14k$ and it was stable over a week.

Gozie51

hero member

Activity: 2660

Merit: 630

Vave.com - Crypto Casino

Quote from: onecall123 on April 25, 2021, 08:58:54 AM

Suppose Biden imposed 43% tax rate. So, let's sell out Bitcoin now to stay away from high tax we need to pay all those massive future gains. How this can be a solution? Point to be noted, this is what drove Bitcoin below $60K.

Really that you mean ? I don't see proposal for tax increase or increase itself causing hodlers to dump hodling. An increase in tax is suppose to cause more hodling and pump because of the fear of being taxed when you make income from the sale of bitcoin. This is suppose to be a regulation just like fiat printing and increase or decrease in loan can be used to control inflation and devaluation.

onecall123

sr. member

Activity: 2156

Merit: 323

Tax concerns have long waited proposal on the cryptocurrency sector, the recent Joe Biden’s tax plan leading the sell-off, and pushing bitcoin below the $50,000 mark. According to their plan, capital gains tax would rise to 43% for high income earners, but right now which is 30% tax rate.

Suppose Biden imposed 43% tax rate. So, let's sell out Bitcoin now to stay away from high tax we need to pay all those massive future gains. How this can be a solution? Point to be noted, this is what drove Bitcoin below $60K.

DrBeer

legendary

Activity: 3752

Merit: 1864

Quote from: beerlover on April 24, 2021, 04:01:43 PM

Quote from: DrBeer on April 24, 2021, 07:11:47 AM

Already in many sources they explain:
1. Power outages in the Chinese province of Xinjiang, which led to the loss of many industrial miners from the network, began on Friday, but this effect fully manifested itself later.
2. At the same time, there were still unconfirmed rumors that US regulators may start an investigation into unnamed large financial institutions for money laundering in cryptocurrencies. This led to a panic in the market and a massive liquidation of positions on the exchanges. Bitcoin was above $ 62,000 on Saturday morning, and set a local low of about $ 51,500 early on Sunday morning.

Do not forget that the higher taxes (much higher) on the rich also became a problem for the crpto people who sold and profited right away so they can pay the current tax rate on their income before the new tax rate comes. If you profit from crypto right now you pay %30 tax rate and if you do it after the new tax comes in that is 43% that is a lot of difference.

Considering this works for 1+ million dollar profits, that means that many very rich people realized their profits now so that they can reenter later on with whatever they want or maybe not even reentered the market. That is a reasonable approach, if I had that much money I would have done the same but I believe I will never own 1+ million dollars in my life, unless something shocking happens it is not going to happen. This is why I think it is obvious that this played a role, not saying that was the whole thing, but it was one part of it.

Quite an interesting addition, to be honest I did not know about the change in tax rates! In the presence of such a factor, it becomes logical to "drain bitcoin", and in fact fix tax deductions so as not to lose on taxes in the near future. Moreover, in numerical terms, the rebound was just recorded at the border of about 15%, and the price does not fall below, so as not to "cross the line" where the losses due to the fall in the exchange rate will exceed the losses from the growth of tax deductions.

jaysabi

legendary

Activity: 2044

Merit: 1115

★777Coin.com★ Fun BTC Casino!

Quote from: beerlover on April 24, 2021, 04:01:43 PM

Quote from: DrBeer on April 24, 2021, 07:11:47 AM

Already in many sources they explain:
1. Power outages in the Chinese province of Xinjiang, which led to the loss of many industrial miners from the network, began on Friday, but this effect fully manifested itself later.
2. At the same time, there were still unconfirmed rumors that US regulators may start an investigation into unnamed large financial institutions for money laundering in cryptocurrencies. This led to a panic in the market and a massive liquidation of positions on the exchanges. Bitcoin was above $ 62,000 on Saturday morning, and set a local low of about $ 51,500 early on Sunday morning.

Do not forget that the higher taxes (much higher) on the rich also became a problem for the crpto people who sold and profited right away so they can pay the current tax rate on their income before the new tax rate comes. If you profit from crypto right now you pay %30 tax rate and if you do it after the new tax comes in that is 43% that is a lot of difference.

Considering this works for 1+ million dollar profits, that means that many very rich people realized their profits now so that they can reenter later on with whatever they want or maybe not even reentered the market. That is a reasonable approach, if I had that much money I would have done the same but I believe I will never own 1+ million dollars in my life, unless something shocking happens it is not going to happen. This is why I think it is obvious that this played a role, not saying that was the whole thing, but it was one part of it.

Since this tax plan has such an uncertain future, I have trouble believing this is the reason bitcoin fell so dramatically. Who would sell an investment they believe in because a tax plan that is, at best, unlikely to pass was proposed? Further, the stock market didn't have a sell off of a similar magnitude, so it's unlikely this is rich people trying to lock in gains at a lower rate. If so, you would have seen a similar sell off in stocks.

beerlover

legendary

Activity: 3052

Merit: 1188

Quote from: DrBeer on April 24, 2021, 07:11:47 AM

Already in many sources they explain:
1. Power outages in the Chinese province of Xinjiang, which led to the loss of many industrial miners from the network, began on Friday, but this effect fully manifested itself later.
2. At the same time, there were still unconfirmed rumors that US regulators may start an investigation into unnamed large financial institutions for money laundering in cryptocurrencies. This led to a panic in the market and a massive liquidation of positions on the exchanges. Bitcoin was above $ 62,000 on Saturday morning, and set a local low of about $ 51,500 early on Sunday morning.

Do not forget that the higher taxes (much higher) on the rich also became a problem for the crpto people who sold and profited right away so they can pay the current tax rate on their income before the new tax rate comes. If you profit from crypto right now you pay %30 tax rate and if you do it after the new tax comes in that is 43% that is a lot of difference.

Considering this works for 1+ million dollar profits, that means that many very rich people realized their profits now so that they can reenter later on with whatever they want or maybe not even reentered the market. That is a reasonable approach, if I had that much money I would have done the same but I believe I will never own 1+ million dollars in my life, unless something shocking happens it is not going to happen. This is why I think it is obvious that this played a role, not saying that was the whole thing, but it was one part of it.

LUCKMCFLY

legendary

Activity: 2590

Merit: 1882

Leading Crypto Sports Betting & Casino Platform

As they have already mentioned, the power cuts in China, or the possible effect that US President Biden has implemented the Tax system, also a possible panic scenario due to the introduction of Coinbase Coin on Wall Street and for being in correction, but seeing it from a purely speculative point of view, I think that the decline of Bitcoin is due to the same market, due to the action of investors, perhaps people who want to buy Bitcoin are entering and the best way to buy Bitcoin is "cheap ", and for that they push the price down with" shorts "and when we check the" shorts "are open, maybe they want to take the Bitcoin from the people who bought at $64k and the best way is to cause panic.

BITCOIN4X

legendary

Activity: 1974

Merit: 1150

Quote from: DrBeer on April 24, 2021, 07:11:47 AM

Already in many sources they explain:
1. Power outages in the Chinese province of Xinjiang, which led to the loss of many industrial miners from the network, began on Friday, but this effect fully manifested itself later.
2. At the same time, there were still unconfirmed rumors that US regulators may start an investigation into unnamed large financial institutions for money laundering in cryptocurrencies. This led to a panic in the market and a massive liquidation of positions on the exchanges. Bitcoin was above $ 62,000 on Saturday morning, and set a local low of about $ 51,500 early on Sunday morning.

Two reason that might be confirmed as the cause of the decline in bitcoin price this week. But for whatever reason, I don't think bitcoin need good news or bad news to go up or down as it's a free market and it's up to the trader himself. The trader panic lasted for a moment before everything recovered.

Emitdama

sr. member

Activity: 1914

Merit: 328

Quote from: adnancypto049 on April 19, 2021, 10:39:18 PM

I am confused about the sudden dump of cryptocurrencies. can anyone explain that why this happen on Sunday?

It’s still unclear as to what might have led to the crash, but the main news that I have been seeing in the internet as to why the market dropped this low is because of a few reasons and the first one is something that has to do with US Treasury having plans to take actions against money laundering with cryptocurrencies. I don’t know if this might have truly triggered the market to start falling like this.

Then the next has to do with the next blackout that took place in China in the Xinjiang region, I have also seen posts where people were referencing Coinmarketcap and the rate at which has dropped due to the blackout.

DrBeer

legendary

Activity: 3752

Merit: 1864

Already in many sources they explain:
1. Power outages in the Chinese province of Xinjiang, which led to the loss of many industrial miners from the network, began on Friday, but this effect fully manifested itself later.
2. At the same time, there were still unconfirmed rumors that US regulators may start an investigation into unnamed large financial institutions for money laundering in cryptocurrencies. This led to a panic in the market and a massive liquidation of positions on the exchanges. Bitcoin was above $ 62,000 on Saturday morning, and set a local low of about $ 51,500 early on Sunday morning.

qwertyup23

hero member

Activity: 2268

Merit: 789

According to this NEWS, President Biden's move to increase long-term capital gains tax led most of the traders to sell their stocks which also affected cryptocurrencies in general, to wit:

Quote

President Biden is expected to raise long-term capital gains tax for the wealthiest Americans to 43.4%, including a surtax. That would be higher than the top federal tax rate on wage income. The new tax rate would apply to returns on assets held in taxable accounts and sold after more than a year.

This triggered a sell-off in stock markets overnight, with all three major U.S. indexes ending Thursday’s session in the red. Analysts said fears over Biden’s capital gains tax proposal may be extending to crypto investors, who have had a great year with the price of bitcoin having climbed more than sixfold in the last 12 months.

To be honest, this could be a good opportunity for investors to purchase BTCs for either short or long-term investment. Since prices are down, fees are also low which could also be a good opportunity to acquire more.

xSkylarx

hero member

Activity: 2366

Merit: 594

Quote from: jackg on April 19, 2021, 10:46:59 PM

There were two main theories I saw.
One was that mining rates dropped due to flooding in China which temporarily took out ~10-30% of the total hashrate.

This is the number one reason I think why that flash crash happened. I am on pc that time watching the 15mins timeframe of bitcoin. It's on $56k that time and in just a few minutes it went down to $50k. If this such events can happen then can they do it again in the future? What resultes for that flooding, why they are not able to prevent it.

Quote from: jackg on April 19, 2021, 10:46:59 PM

The second reason was due to a funding rate indicator on leveraged positions that said there were a lot of longs open and a high funding rate for shorts (meaning short term shorts were paying people to open them and leave them open). I assume that could then build into a bias if the market starts to get a bit stagnant.

This is reasonable but I don't think that can completely cause that flash crash. We could just dump for couple of days so it is a healty correction.

Zanab247

full member

Activity: 1358

Merit: 207

Catalog Websites

Here are some causes of bitcoin flash crash on Sunday:
• Many companies are ready to make a lot of sense the profit from bitcoin.
• Many investors are set to recover all that they have lost during the pandemic.
• Bitcoin price is about to increase to $70k, that is why is developing some attitudes of decreasing sometime in the exchange market.
• Many government are prepared to do everything possible to improve their economy that covid-19 has collapsed during the pandemic.

Refrumatrix

member

Activity: 301

Merit: 13

$CYBERCASH METAVERSE

Be prepared because there will be more crashes in near future, whales and big institutions will take profits too, BTC dominance is way down now and it looks like altcoin season that we have been looking for is upon us finally but what will happen after that? Market will be manipulated and crash will happen

slapper

legendary

Activity: 1946

Merit: 1100

Leading Crypto Sports Betting & Casino Platform

It is hard to make a precise answer in this case. There was a news recording that the hash rate of bitcoin, significantly reduce in a short time due to regulation in China in order for safety. The number was reduced 20-50% and I considered this could be a great collision to the market.

The second theory which I observe by myself and through data: big companies (regards to institutional investors) take profit because Q2 is usually considered as the end of a year to many company, especially China. Bitcoin has grown more than 1000% if we compare with the price in last year. So it needs to have a correction in order to increase further

Oceat

sr. member

Activity: 2506

Merit: 368

Quote from: ShowOff on April 23, 2021, 03:36:17 PM

We never find a definite reason when a market correction occurs. But bad news in the mainstream media can have an impact on the psychology of both trader and investor. I heard that the recent Chinese incident was a factor in the price correction (not a definite cause) as well as news that Biden want to implement a bigger tax regime. Almost every bad news get a trader's attention so panic ensues which in the end a correction occurs.

For me, it's not bearish yet, there are circumstances that actually affect the crypto market and one of the reason is the hashrate drop. This massive correction may be normal or common to someone but with the that actual drop after Bitcoin reached the $64k ATH. I think someone is dumping their holdings that resulted in this huge decline in the market.

While some news are adding fuel to the fire to make the market worst this is what the journalist doing these days to catch attention, they need to make FUD to the current situation.

Issa56

hero member

Activity: 1484

Merit: 928

Seriously have been doing my research and have not seen any concrete reason why bitcoin dump, lots of people long bitcoin and other altcoins bitcoin dump really liquidated lots of people that long there coin on future trading bitcoin dump really crash altcoin price lots of people have been scared and don't really know the cause of the dump and lot's of people have been scared and selling there coin which they believe bitcoin will still dump more which is going to dump altcoin price must people are still expecting more dip but from my research I believe bitcoin price is kind of stable currently which with time it will bounce back gradually and other altcoins are going to follow it so you don't have to be scared but if you are into future trading make sure your laverage is very low.

ShowOff

legendary

Activity: 2618

Merit: 1181

We never find a definite reason when a market correction occurs. But bad news in the mainstream media can have an impact on the psychology of both trader and investor. I heard that the recent Chinese incident was a factor in the price correction (not a definite cause) as well as news that Biden want to implement a bigger tax regime. Almost every bad news get a trader's attention so panic ensues which in the end a correction occurs.

jostorres

hero member

Activity: 2562

Merit: 586

Quote from: Quidat on April 22, 2021, 06:14:05 PM

When it comes to market correction then expect that situations like these are bit common where it can really be tied up.Cant be considered to be healthy one yet it can be still on the manipulative
side of things but situations like these isnt something new into this market where events and news like these can really make out some impact on the entire market.
Inspite for you to see these things to be on negative side then why we cant just see this as an opportunity for us to enter the market on much cheaper compared into those
almost 60k price peak?

Remember just a few months ago we went from 58k to 43k and everyone thought that was the end of bitcoins bull run and we would end up not being at high levels ever again. Looking at the situation right now it looks eerily similar to that. The price of bitcoin is down, the price of many altcoins are down, the market is crying that we are screwed, there are news of people committing suicide because of how much they have lost, and there is an "agreed" talk on social media that this is the doom for crypto.

This happened literally this year, we are on 4th month and this is either second or third time this is happening and people for some reason think that this time they are right, this time it is definitely screwed and bad, I do not know why that would be the case, why they are this much afraid but it happens anytime price goes down and last time we went back to 64k from 43k which is why I am not worried at all.

uneng

hero member

Activity: 2044

Merit: 784

Leading Crypto Sports Betting & Casino Platform

Quote from: stompix on April 20, 2021, 05:04:21 PM

Quote from: jackg on April 19, 2021, 10:46:59 PM

There were two main theories I saw.
One was that mining rates dropped due to flooding in China which temporarily took out ~10-30% of the total hashrate.

I don't buy this theory.
The hashrate drop started somewhere Friday, just one day after the retargeting, it was visible on every graph on Saturday and nearly all in the users knew about it the drop, it was pretty obvious, so why would the sell-off start 24h later and be just an instant crash with no prolonged repercussions?
The situation in China hasn't stabilized yet, the fees are through the roof, all the trigger elements in this scenario are still there and affecting the network yet the price is recovering even with no indicator that the entire hashrate isn't done for.

Although I don't like the manipulation theories at all and usually I try to toss them aside a huge sell to wipe out all those long positions by somebody who had a lot to gain from might be a better scenario. I don't think it's that simple, I don't like it but there is nothing else, all the other events are simply too far away from a timing perspective.

We never really know why the market is affected this way or that way, but the theory makes sense... The incident in China could had been just the trigger and what happened after (price dropping), the consequence. Investors see something worrying happened, so they tend to get out the market, causing a considerable drop on that moment, but once they see the situation isn't so serious (or that it's not going to become worse), the market starts recovering slowly again, although the trigger incident issue isn't totally solved yet.

jaysabi

legendary

Activity: 2044

Merit: 1115

★777Coin.com★ Fun BTC Casino!

Quote from: jackg on April 19, 2021, 10:46:59 PM

There were two main theories I saw.
One was that mining rates dropped due to flooding in China which temporarily took out ~10-30% of the total hashrate.

The second reason was due to a funding rate indicator on leveraged positions that said there were a lot of longs open and a high funding rate for shorts (meaning short term shorts were paying people to open them and leave them open). I assume that could then build into a bias if the market starts to get a bit stagnant.

Why would the mining rates dropping affect the price though? I don't follow the connection between a drop in mining rates and price. Ostensibly, the mining rates follow the price, in that when the price goes up it induces more miners to invest in mining equipment to compete for a larger share of blocks, or when the price drops it might no longer be profitable to mine and it might take miners offline because they're losing money by operating. I don't see how a drop in miners would affect the price though, it seems to be the reverse of how it works.

Quidat

hero member

Activity: 2688

Merit: 540

DGbet.fun - Crypto Sportsbook

Quote from: Kasabus on April 22, 2021, 02:37:08 PM

Quote from: mu_enrico on April 20, 2021, 11:55:03 AM

Profit taking, after traders make some money, they will buy again and the cycle continues. So if you have a friend who is an experienced trader, you will have a pretty good chance of a free meal. Wink

The horror would be if the price dump once more. Traders who recently did a long position on BTC would get shaky.

Yes i think this is more of a healthy correction that is inevitable once the price have seen to be in a continuous surge. So i don't see it as a big flash crash because this is bound to happen particularly in a volatile market. If others see this correction as big threat, expert traders considered this one as another opportunity to start buying again.

When it comes to market correction then expect that situations like these are bit common where it can really be tied up.Cant be considered to be healthy one yet it can be still on the manipulative
side of things but situations like these isnt something new into this market where events and news like these can really make out some impact on the entire market.
Inspite for you to see these things to be on negative side then why we cant just see this as an opportunity for us to enter the market on much cheaper compared into those
almost 60k price peak?

Princejebs

member

Activity: 560

Merit: 26

A healthy market need a healthy correction and I think the Sunday crash didn't come by surprise,i was expecting it though I don't know why it's a surprise by others probably because they are so bullish on the market.
Every bull run has its time and I don't see much steam this bill run again, if you also observe MACD, it seem there is going to be a crossover sell pressure on bitcoin chart, the weekly one precisely.
Elon musk (Tesla) shares also drop during the weekend, I think that also contributed to the sharp decline.

Kasabus

hero member

Activity: 2814

Merit: 576

Quote from: mu_enrico on April 20, 2021, 11:55:03 AM

Profit taking, after traders make some money, they will buy again and the cycle continues. So if you have a friend who is an experienced trader, you will have a pretty good chance of a free meal. Wink

The horror would be if the price dump once more. Traders who recently did a long position on BTC would get shaky.

Yes i think this is more of a healthy correction that is inevitable once the price have seen to be in a continuous surge. So i don't see it as a big flash crash because this is bound to happen particularly in a volatile market. If others see this correction as big threat, expert traders considered this one as another opportunity to start buying again.

pixie85

hero member

Activity: 2184

Merit: 531

Quote from: mersal on April 20, 2021, 02:50:34 PM

Quote from: pixie85 on April 20, 2021, 01:37:06 PM

Like others said the main reason is profit taking and it coincided with some rumors of a bitcoin ban in Turkey which did not help with a swift recovery.

This is not a rumour but wrong information, the government didn't ban the bitcoin Turskish central bank did and they don't have huge influence in the crypto market for this price correction. And the exact reason is China's mining farm so let's imagine what will happen if miners stopped working all of a sudden the price could drop but once they resume to be available then everything will become normal.

So you're blaming China exclusively for the drop? Does it mean that in your opinion there would be no correction after a new all time high if there was no news from China?

I don't agree with this as we had similar correction after the first ATH of 58000 and there was no negativity in the news. No wrong info about Turkey and no Chinese miners selling.

IMO active traders are usually responsible for every drop that is smaller than 10% and it has a lot to do with low liquidity on exchanges. You don't need a lot of money to push price down especially now when so many coins leave exchanges because people are holding.

Twentyonepaylots

sr. member

Activity: 1918

Merit: 370

I believe it is the tweet about the US Treasury a couple of days ago that started this dipping. People got consumed by the fear of losing their earnings and have since dipped out. A domino effect ensued where people that haven't seen the tweet still sold their assets because the coin is dumping and they wouldn't want their holdings to depreciate in value. Things like this have been going on with bitcoin ever since it was created so this is nothing new.

Oasisman

hero member

Activity: 2716

Merit: 552

Quote from: semobo on April 20, 2021, 06:00:49 AM

Bitcoin network clogged could be one of the reason why people are rushing to sell their coins, but the network clog happened due to the electricity outage for the mining farms in China due to some kind of accident and which is expected to resume in couple of weeks by that time only we can see the transaction fee to be lowered and so called people will start using bitcoins again for any purposes other than holding.

Probably it's not gonna be the main reason. I mean why would someone sell off their Btc during network clogged where tx fees are so da*n high.
China's electricity incident pretty much causes the network clog as there were a huge Btc mining farm where it was situated when the incident happened, that causes a hash rate drop.
But there are still several relevant reasons for the sudden sell off that remains unknown. Nevertheless, everyone in crypto space is just speculating.

oHnK

hero member

Activity: 1414

Merit: 574

Quote from: The Sceptical Chymist on April 20, 2021, 02:57:06 PM

there's absolutely no explanation for the price movement. It's all about investor sentiment--the demand portion of the supply & demand curve. Sometimes people just sell a lot of bitcoin when there aren't enough buy orders to keep the price afloat and what happens? Bitcoin drops. I've learned to just accept the fact that bitcoin is crazy volatile and very unpredictable. That's what makes it fun!

It is true that the price of Bitcoin moves based on demand and supply, but still the high demand and supply can be caused by many factors, one of which is a growing issue or just a price correction. Not only news in the US, even in local news reports in my country consider this decline to be the impact of several cases that have been described by others. However, the case which is the most interesting but not very significant effect on the price of Bitcoin is the case of the Turkish government which banned BTC as a means of payment. This is the case that has happened frequently and many countries have implemented it so in my opinion this will not have enough effect on the overall price. Are those who have 20% of BTC are only Turks so they can move it massively.

SaShiRaJaVu

hero member

Activity: 1694

Merit: 541

Quote from: Gozie51 on April 20, 2021, 04:46:09 PM

In instance, price couldn't sustain itself around $64,000 and I think when that happened, many investors start taking an impatient decision to sell. Another factor may be a little kind of manipulation by whales to dump and wait for a sloppy downwards move.

This is the over all picture that the price could not sustain those levels but what triggered are the sudden drop in hash rate and then there was a rumor surrounding in social media groups that the US is planning to go after investors who are using the cryptocurrency market to launder money and for a rallying market to go into a minor correction mode these things are more than enough.

wxa7115

hero member

Activity: 2814

Merit: 734

Bitcoin is GOD

Quote from: adnancypto049 on April 19, 2021, 10:39:18 PM

Hi,
I am confused about the sudden dump of cryptocurrencies. can anyone explain that why this happen on Sunday?

Most of the time the most simple explanation is the correct one and I think most of this situation can be explained by just the supply and the demand, the volume was kind of weak during the last weeks and once a new all time high is reached that is when the price is the most exposed to a reversal.

Then when the reversal was happening many investors were caught using too much leverage and some of their positions were forcefully closed by exchanges, this in return made the price to go lower which created another series of margin calls producing a domino effect which created a crash in the process.

grabpopcorn536

member

Activity: 476

Merit: 12

I think the power outage in China caused the value of Bitcoin to collapse. I don't think the power outage event at a mining cluster was the main cause. It could be that hedge funds or sharks shook hands to sell Bitcoin and crash the market on Sunday. They just needed a reason to act together, that was part of a planned conspiracy. We are the ones who are led and always explain facts.

stompix

legendary

Activity: 2912

Merit: 6403

Blackjack.fun

Quote from: jackg on April 19, 2021, 10:46:59 PM

There were two main theories I saw.
One was that mining rates dropped due to flooding in China which temporarily took out ~10-30% of the total hashrate.

I don't buy this theory.
The hashrate drop started somewhere Friday, just one day after the retargeting, it was visible on every graph on Saturday and nearly all in the users knew about it the drop, it was pretty obvious, so why would the sell-off start 24h later and be just an instant crash with no prolonged repercussions?
The situation in China hasn't stabilized yet, the fees are through the roof, all the trigger elements in this scenario are still there and affecting the network yet the price is recovering even with no indicator that the entire hashrate isn't done for.

Although I don't like the manipulation theories at all and usually I try to toss them aside a huge sell to wipe out all those long positions by somebody who had a lot to gain from might be a better scenario. I don't think it's that simple, I don't like it but there is nothing else, all the other events are simply too far away from a timing perspective.

Gozie51

hero member

Activity: 2660

Merit: 630

Vave.com - Crypto Casino

Quote from: Snappycoco on April 20, 2021, 10:08:49 AM

It is clearly due to correction. The run wasn't supported enough and leads to sudden dump but I guess it would be long enough before it bounce back.

Yes correction could be responsible. Although correction is usually caused by many factors which either continuous bull can be one of them and price can just start dropping as investors start going out. It can also be traders watching out for support and resistance areas. In instance, price couldn't sustain itself around $64,000 and I think when that happened, many investors start taking an impatient decision to sell. Another factor may be a little kind of manipulation by whales to dump and wait for a sloppy downwards move.

hatshepsut93

legendary

Activity: 3024

Merit: 2148

Quote from: pixie85 on April 20, 2021, 01:37:06 PM

I see that as a healthy correction after reaching a new high.

When we first approached 60 thousand we also had a similar correction, then recovered and hit a new high. This correction is really bullish since we did not have a -50% correction followed by a dead cat bounce like in 2013 and 2018.

Like others said the main reason is profit taking and it coincided with some rumors of a bitcoin ban in Turkey which did not help with a swift recovery.

It was a correction and delevererging of the market, but it's also pretty bad that the new top is only $3,000 higher than the previous one: $61,000 -> 64,000.

If you zoom out the chart, it's evident that the market slowed down by a lot, we're stuck near $60,000 for two months already.

The Sceptical Chymist

legendary

Activity: 3528

Merit: 7005

Top Crypto Casino

Quote from: Argoo on April 20, 2021, 01:36:48 AM

This is the statement of the US Treasury Department on its intention to take harsh measures against financial institutions for money laundering using cryptocurrencies, and the introduction of US sanctions against 28 cryptocurrency bitcoin addresses, which are accused of involvement in interference in last year's presidential election, and a statement by the Turkish government to ban use cryptocurrency as a means of payment, and other similar news.

Huh. I hadn't heard about any of that--and I probably should start reading some of the crypto news sites regularly instead of relying on members here to post about something. But whatever; I'm not sure any of the above had anything to do with the price drop we saw over the weekend. JackG's explanation seems to make more sense, although whenever I see bitcoin drop 10% or so over the course of a day or two, I usually attribute it to traders selling bitcoin and taking their profits.

OP probably hasn't been watching the bitcoin market for a long time, because if he had been he likely would not have asked this question. Bitcoin has been far more volatile than it was this weekend, and a lot of times there's absolutely no explanation for the price movement. It's all about investor sentiment--the demand portion of the supply & demand curve. Sometimes people just sell a lot of bitcoin when there aren't enough buy orders to keep the price afloat and what happens? Bitcoin drops. I've learned to just accept the fact that bitcoin is crazy volatile and very unpredictable. That's what makes it fun!

mersal

member

Activity: 1204

Merit: 38

Quote from: pixie85 on April 20, 2021, 01:37:06 PM

Like others said the main reason is profit taking and it coincided with some rumors of a bitcoin ban in Turkey which did not help with a swift recovery.

This is not a rumour but wrong information, the government didn't ban the bitcoin Turskish central bank did and they don't have huge influence in the crypto market for this price correction. And the exact reason is China's mining farm so let's imagine what will happen if miners stopped working all of a sudden the price could drop but once they resume to be available then everything will become normal.

pixie85

hero member

Activity: 2184

Merit: 531

I see that as a healthy correction after reaching a new high.

When we first approached 60 thousand we also had a similar correction, then recovered and hit a new high. This correction is really bullish since we did not have a -50% correction followed by a dead cat bounce like in 2013 and 2018.

Like others said the main reason is profit taking and it coincided with some rumors of a bitcoin ban in Turkey which did not help with a swift recovery.

mu_enrico

copper member

Activity: 2324

Merit: 2142

Slots Enthusiast & Expert

Profit taking, after traders make some money, they will buy again and the cycle continues. So if you have a friend who is an experienced trader, you will have a pretty good chance of a free meal. Wink

The horror would be if the price dump once more. Traders who recently did a long position on BTC would get shaky.

el kaka22

legendary

Activity: 3654

Merit: 1165

www.Crypto.Games: Multiple coins, multiple games

The talk around the crypto community is that it might have been because of USDT borrowers, they ended up putting money in and they borrowed bitcoin by owing USDT to binance. When the price had a small fall, that resulted with some being liquidated to pay their debt, and that caused it to go down even more, and it created a rippling effect that caused it to crash.

We can't know for sure, but I believe that is a data we can back it up, maybe not all the crash was because of it, let's face it there were a lot of people who panic sold their coins as well, but that is still just a portion of it. When you have a crash like this, it is not really about just one thing, it is usually about many things, that is why I believe it could have been many things contributing to make it go down this much, but it looks fine now and will probably recover.

BrewMaster

legendary

Activity: 2128

Merit: 1293

There is trouble abrewing

if you check any of the previous corrections you can see that they always look the same and most of the times the situation in the market is also the same.
for example this last correction was a small 10% correction which is a very common correction that takes place each time price rises too high too fast and then fails to break the next resistance level so it falls down a little before it starts climbing back up again.

with this recent correction we had an incident about the hashrate that helped with spread of panic among weak hands who are always too quick to panic dump their bit coins. so the drop was sudden and some newcomers think it was a "crash" while it was a simple correction.

oHnK

hero member

Activity: 1414

Merit: 574

I can see in a simple way that the market is currently undergoing a correction after a long bullish stage causing my social media accounts to fill up with people showing off their crypto portfolios. I consider this a common thing in the world of investing both in the short term and the long term. I'm sure there will be a new draw point in crypto after its insane bulls. I was quite shocked to see the correction deep enough.

Snappycoco

member

Activity: 534

Merit: 19

It is clearly due to correction. The run wasn't supported enough and leads to sudden dump but I guess it would be long enough before it bounce back.

mezzaluna

member

Activity: 518

Merit: 23

★Bitvest.io★ Play Plinko or Invest!

Quote from: jackg on April 19, 2021, 10:46:59 PM

There were two main theories I saw.
One was that mining rates dropped due to flooding in China which temporarily took out ~10-30% of the total hashrate.

The second reason was due to a funding rate indicator on leveraged positions that said there were a lot of longs open and a high funding rate for shorts (meaning short term shorts were paying people to open them and leave them open). I assume that could then build into a bias if the market starts to get a bit stagnant.

Another reason that I saw was it was kinda called a correction. The guy who did the Technical Analysis stated that its basically something that was bound to happen to put its value near to its absolute value and I kinda believe that the Cryptocurrencies currents value are good and nice since its kinda getting that stable line in every chart that we are seeing and most bullish coins right now are either new coins or old coins that suddenly have their community shilling for them.

Another reason was a lot of people were FOMOing on certain coins that pumped before the dumped happen and I believe most of them are newbies so its just scary for them to lose so much money within this industry.

Nhazwrath

member

Activity: 289

Merit: 40

I have a single s9 asic I bought to learn on which has pulled in far more value then ever expected due to the big jump in BTC value.

the total number of miners in the pool i am utilizing when i joined it was at just under 100,000. ow it hovers at 150,000 the number of miners in that pool on Sunday didn't drop. I do not know how to determine where the machines are of course. but its Slushpool one of the oldest.

tomahawk9

hero member

Activity: 2086

Merit: 994

Cats on Mars

Quote from: semobo on April 20, 2021, 06:00:49 AM

Bitcoin network clogged could be one of the reason why people are rushing to sell their coins

i don't think that's ever been the reason behind a sell-off or flash crash. If anything it is an indication that something else happened in the cryptospace which triggered a sudden spike in tx's like maybe massive swing in the price, or some big news in the cryptosphere, or like an another user mentioned, a drop in the hashrate.

Taskford

hero member

Activity: 2520

Merit: 783

Quote from: adnancypto049 on April 19, 2021, 10:39:18 PM

Hi,
I am confused about the sudden dump of cryptocurrencies. can anyone explain that why this happen on Sunday?

What make you think that way? Maybe you think massive dump would possibly came due to the current huge dumping activities happening this week?

Maybe that's not possible to be seen since the bitcoin price is in goo figures right now it go stable at 55k rate so no wonder it could bounce back again since we provably at this rate the whales will start to accumulate since this is the cheapest price what bitcoin gotten for the past following weeks since Month April starts if I'm not wrong.

semobo

full member

Activity: 1498

Merit: 146

Bitcoin network clogged could be one of the reason why people are rushing to sell their coins, but the network clog happened due to the electricity outage for the mining farms in China due to some kind of accident and which is expected to resume in couple of weeks by that time only we can see the transaction fee to be lowered and so called people will start using bitcoins again for any purposes other than holding.

franky1

legendary

Activity: 4410

Merit: 4766

dont think of it as a 'crash'. because the month average has been $56k anyway

the $64k was a temporary blip. not sustainable.
a $53k-$56k is a normal flow average for the last month. and not something to panic/worry/question

but now we know the market has tested $62k twice in the last 3 months. it shows that its capable of going up in the midterm future. but just not ready yet to go up and stay up

fiulpro

hero member

Activity: 1890

Merit: 831

Quote from: mk4 on April 20, 2021, 12:47:08 AM

So what if it's Sunday though? The cryptocurrency markets are open 24/7, so while some days statistically have a bit less volatility than other days, it definitely doesn't necessarily mean that such so called 'crashes' can't happen due to whatever reason.

Yes it's not some stock market where you might have to wait in line for days and then think about what's going on wrong there.

It is not controlled by any governing body so there are no limitations. If we do follow the Coinbase they are blaming it to force liquidations. Here is a quote from there :

Quote

The crypto futures market saw the highest nymber of liquidations in history on Sunday as the sudden bitcoin (BTC, -5.11%) price pullback caught overleveraged traders off guard.

Exchanges offering crypto futures liquidated $10 billion worth of positions on Sunday, toppling the previous market-wide record of $5.77 billion registered on Feb. 23, according to data provider Bybt

https://www.coindesk.com/crypto-futures-saw-record-10b-worth-of-liquidations-on-sunday

That could have been your answer and other than that I do think we can just be in a stage of some price correction . Plus it's good that people are buying excessively during this dip and the price is not going down excessively. Therefore that's a plus point for the market for sure.

Argoo

sr. member

Activity: 2352

Merit: 245

I was also interested in this issue, read and heard many different versions of what happened. This is the statement of the US Treasury Department on its intention to take harsh measures against financial institutions for money laundering using cryptocurrencies, and the introduction of US sanctions against 28 cryptocurrency bitcoin addresses, which are accused of involvement in interference in last year's presidential election, and a statement by the Turkish government to ban use cryptocurrency as a means of payment, and other similar news.
There are also two more possible versions of what happened that I have not heard of. There can be many such possible reasons. It is unlikely that we will be able to find out the true reason. It may also be that all of them, to one degree or another, influenced the situation with the fall of the cryptocurrency market.

mk4

legendary

Activity: 2870

Merit: 3873

Paldo.io 🤖

So what if it's Sunday though? The cryptocurrency markets are open 24/7, so while some days statistically have a bit less volatility than other days, it definitely doesn't necessarily mean that such so called 'crashes' can't happen due to whatever reason.

jackg

copper member

Activity: 2856

Merit: 3071

https://bit.ly/387FXHi lightning theory

There were two main theories I saw.
One was that mining rates dropped due to flooding in China which temporarily took out ~10-30% of the total hashrate.

The second reason was due to a funding rate indicator on leveraged positions that said there were a lot of longs open and a high funding rate for shorts (meaning short term shorts were paying people to open them and leave them open). I assume that could then build into a bias if the market starts to get a bit stagnant.

adnancypto049

newbie

Activity: 27

Merit: 0

Hi,
I am confused about the sudden dump of cryptocurrencies. can anyone explain that why this happen on Sunday?

Topic: What Could Have Caused Bitcoin to Flash Crash On Sunday? (Read 582 times)