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What is a flash crash in Bitcoin, and why does it matter?

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 23 Views

Bitcoin’s price can collapse in minutes during a flash crash. Learn about the market dynamics and what causes prices to plummet, wiping billions off the BTC market.

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. 

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