What is a Bitcoin flash crash?
A Bitcoin flash crash is a sudden, sharp plunge in the market price of BTC that only lasts a short period of time before prices start to normalize.
The appearance of unique market conditions causes a jolt in the leading cryptocurrency’s market price. Typically, the reason behind a flash crash is a large group of sellers (called whales) deciding to sell Bitcoin (BTC) suddenly and flood the market with supply. This overwhelms buyers and can erase billions from the market in minutes.
The fact that BTC flash crashes have still occurred in recent years highlights the continued crypto volatility risks, even with a robust crypto asset like BTC. Despite crypto’s multitrillion-dollar market status, it is still maturing.
Particularly for newer investors in the space, it is critical to understand BTC price crashes and why they happen. Without this knowledge,