Bitcoin (BTC) has just seen its craziest hour of price action since the weekend, during which the cryptocurrency market rallied by 20%, if not more. For those who missed the memo, or haven’t checked the charts or Crypto Twitter in a hot second, Bitcoin collapsed by over 15% in minutes on major markets, falling from $7,800 to $6,200. Interestingly, however, most of the downturn was contained to Bitstamp, a Europe-centric exchange, as there existed a $500 to $600 spread between its BTC/USD pair and the same pair on Coinbase. Since our report on the matter, BTC has recovered to $7,300, and has begun to trade in a range.
While there was a strong recovery on the back of volumes, some are fearful that this flash crash dealt irreversible technical damages on the crypto asset charts. Speaking to MarketWatch, Fawad Razaqzada, an analyst at Forex.com, explained that this move confirms that the cryptocurrency market is susceptible to such volatility spikes, which are a common sight in nascent markets.