Bitcoin Just Spiked Down to $8.9k (Not a Typo)
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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 instance, $60k.
The factor is: exchanges are by no means the very same as a result of the worth is a mean estimate of future costs based mostly on earlier, however latest, transactions on every change.
Principally, the exchanges are enjoying a recreation of “let’s guess the present value by trying on the very latest previous.”
Effectively! BitMEX ended up having some wild transactions yesterday.
Somebody offered 400 BTC in a 2 hour interval on the platform, messing up BitMEX’s capacity to precisely “guess the present value by trying on the very latest previous,” and the change’s BTC value briefly plummeted consequently.
Fortunate for the broader crypto house, it was unique to BitMEX and the market solely had a slight response earlier than all of it recovered.
Cool, properly, now ya know!
