TL;DR
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Uhhhhhh — how on earth did this occur??
Out of skinny air, Bitcoin’s value tanked to $8.9k on BitMEX.
Right here’s the how and why of all of it:
At any given time, a bunch of crypto exchanges are inside pennies of the identical BTC value, as an example, $60k.
The factor is: exchanges are by no means the very same as a result of the value is a median estimate of future costs based mostly on earlier, however current, transactions on every alternate.
Mainly, the exchanges are taking part in a sport of “let’s guess the present value by trying on the very current previous.”
Nicely! BitMEX ended up having some wild transactions yesterday.
Somebody bought 400 BTC in a 2 hour interval on the platform, messing up BitMEX’s means to precisely “guess the present value by trying on the very current previous,” and the alternate’s BTC value briefly plummeted in consequence.
Fortunate for the broader crypto area, it was unique to BitMEX and the market solely had a slight response earlier than all of it recovered.
Cool, effectively, now ya know!