Home Technology ‘Technical Glitch’ Caused Bitcoin Price Crash

‘Technical Glitch’ Caused Bitcoin Price Crash

When you purchase through our sponsored links, we may earn a commission. By using this website you agree to our T&Cs.

The price of Bitcoin may have crashed on Sunday, by International brokerage EXANTE CEO, Anatoliy Knyazev says this was probably due to a technical glitch!

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q2 2020 hedge fund letters, conferences and more

No Fundamental Reason Behind The Bitcoin Price Crash

"The drop, which occurred in the early hours of Sunday, is technical/speculative in nature, there’s no fundamental reason for the price action at this time of day, the world is dormant and almost no assets are priced globally."

"Such spikes are still inherent to the crypto market structure, with prolific unregulated leveraged trading going on. Could be a case of an algo misbehaviour or, most probably, an attempt to cause some panic and buy cheaper Bitcoin when some simpler algorithms are triggered due to the sell, e.g. “stop loss” orders of retail clients with leveraged positions would be vulnerable."

"One just has to keep this market structure in mind and approach Bitcoin as more of an illiquid asset still. If one trades with no to modest leverage and refrains from using “stop loss” orders, e.g. if one is holding for longer investment horizons, such flukes shouldn’t cause any trouble. They’re definitely not showing us a sudden change in fundamentals, Bitcoin's not dead and won’t be."

What do you think caused Bitcoin's crash? Could it be a glitch? Perhaps its more and a large institution is trying to liquidate a big crypto portfolio? Another option is manipulation by a big player? In an unregulated market, it may be impossible to ever know for sure. Tell us your thoughts by sounding off in the comments section.

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Jacob Wolinsky

Want Financial Guidance Sent Straight to You?

  • Pop your email in the box, and you'll receive bi-weekly emails from ValueWalk.
  • We never send spam — only the latest financial news and guides to help you take charge of your financial future.