As we all know, there’s been a huge flash crash which was triggered by a multi million dollar market sell couple of months ago which made the price of ethereum go from $300 to $0.10 in few seconds and also made a guy millionaire in seconds who had a buy order for 3,800 ETH when price hits 10 cents.
Today it happened again today on GDAX, an exchange for Bitcoin, Ethereum and Litecoin by Coinbase. between 12:05 PM – 12:10 PM EDT, there’s a mini flash crash which caused the price of Ethereum to go down by 10% and recover in a matter of seconds.
The flash crash was basically caused by automated market orders that are designed to help a trader limit their losses. They are called stop loss orders, as the name suggests, the order is automatically executed once the instrument’s price reaches a certain limit so that the trader can cap losses.
There was a volume of 6642 ETH in this 5 minute time frame and price has crashed from 0.05760 to 0.05104 which is about 11%. Though it’s very minimal compared to volatility in cryptocurrency space. It sure was a delight for few orders that were filled by this crash.
We’ll update more details on this as we receive them.