There are always interesting developments to keep an eye on in the world of cryptocurrency. More specifically, the Binance exchange saw some weird momentum earlier today. For some reason, the Bitcoin Cash price dropped by almost 40% for a nice flash crash. The dip was ultimately bought up pretty quickly, but it is evident this type of behavior raises a lot of questions. Thankfully, the BCH price recovered fairly quickly. Such dips are not uncommon, but it’s always a worrisome sight.
For the time being, no one knows what happened over at Binance. The Bitcoin Cash price dropped from 0.18 BTC all the way to .0107 in a matter of minutes. With a weak order book on the buy side, such things are bound to happen sooner or later. Then again, the dip only last for all but 10 minutes before the price returned to more normal levels. Someone decided to liquidate a healthy amount of BCH in one go. Considering how Binance is the 4th biggest trading market for BCH, this choice is rather interesting.
Bitcoin Cash Flash Crash on Binance
It is worth mentioning this behavior is not unique to this platform. A lot of BCH coins have been sold across various platforms at prices below the current market average. One would almost assume there is some manipulation going on. Proving that is the case is something else entirely. People are free to trade currencies however they please. If they want to crash the price, there is very little one can do about it right now. It is evident things like these will happen to any currency if the order book on a particular platform looks rather shaky.
https://twitter.com/BTC4USD/status/952909278871945216
It is equally possible this was a so-called fat finger trade. People entering the wrong sell amount and placing an order will get “rekt” pretty quickly. For now, we don’t know how this dip came to be, but it’s all in the past as we speak. Bitcoin Cash is still holding strong, even though the past week has not been easy whatsoever. The markets will eventually resume their regular pace in the future, though. How all of this will play out in the coming days, remains to be seen.
Cryptocurrency markets are notoriously volatile in nature. Flash crashes and dips will occur multiple times per day on any platform. Bitcoin Cash will be no exception in this regard, even though it remains to be seen how things evolve. For now, there is absolutely nothing to worry about as a BCH holder. Whether or not Binance will have an explanation for this dip, seems highly unlikely. Nor do they need one, as markets will respond in strange ways now and then.
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