Large Bitcoin Sell-Off Triggers Flash Crash, Leading to $623 Million in Liquidations

A massive sell order of 24,000 BTC sparked a 3.74% drop, though Bitcoin remains up from its weekend low, as traders anticipate Jerome Powell's upcoming Jackson Hole speech.

BTC

Summary

A large sell order of 24,000 BTC, valued at $2.7 billion, triggered a flash crash causing a 3.74% drop in Bitcoin's price within minutes, resulting in $623 million in liquidations. Despite this, Bitcoin is up 2.41% from its weekend low. Analysts view the sell-off as a normal market correction, noting that whale selling is necessary for Bitcoin’s full monetization. The options market remains mixed, with traders awaiting signals from the Federal Reserve Chairman's Jackson Hole speech. Bitcoin’s price action remains closely monitored for future momentum shifts.

Terms & Concepts
  • Flash Crash: A rapid and severe drop in asset prices within a very short period, often caused by large buy or sell orders or market disruptions.
  • Delta Skew: A measure of the difference between implied volatility for options with different strike prices, indicating market sentiment and positioning.