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Bitcoin (BTC) lost 23.7% of its value against the euro on Coinbase (COIN) Tuesday during the period of high volatility that followed the crypto’s surging to a record U.S. dollar high of $69,325.
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BTC momentarily plunged to €48,529 from €60,000 on Coinbase, while on Kraken, for instance, the price only went as low as €58,400. The reason for the flash crash remains unclear and it took 10 minutes for the price to rebound back to parity with other exchanges.
Flash crashes can typically be attributed to a few scenarios, one of which is a lack of liquidity, i.e., the amount of market sell orders was too high for the amount of resting buy orders on the order book and the price thus needing to sink to the nearest point of adequate bids.
Another reason, as seen during a flash crash on Binance.US in 2021, is a bug or mistake made by a trader or algorithm, often called a “fat finger” trade.
The disparity between euro trading pairs occurred shortly after bitcoin surged to a new record high in U.S. dollar terms of $69,325 and within minutes reversed those gains, sliding to below $64,000 at one point.
Coinbase did not immediately respond to CoinDesk’s request for comment.
Read More: Bitcoin/Euro Suffers Flash Crash on Coinbase
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