Home Bitcoin flash crashes to $8,900 on BitMEX

Bitcoin flash crashes to $8,900 on BitMEX


  • Bitcoin plummets to $8,900 on BitMEX but remains stable elsewhere.
  • Sharp downturn swiftly recovers to $67,000 within minutes.
  • Speculation arises over massive sell-off triggering the price drop.

Bitcoin (BTC) experienced a sudden drop to $8,900 on BitMEX, deviating significantly from its stable $60,000+ valuation on other exchanges.

What is a Bitcoin flash crash?

On a late Monday, Bitcoin experienced a swift downturn, dropping to a low of $8,900 on the cryptocurrency exchange BitMEX, a stark contrast to its stability above $60,000 on other platforms. This is known as a flash crash.

A sharp decline started at 22:40 UTC that within two minutes led Bitcoin’s price down to $8,900, marking its lowest point since the beginning of 2020. However, the recovery was just as rapid, with the price surging back to $67,000 by 22:50 UTC.

During this rapid rise and fall on BitMEX’s spot market, the global average price of BTC hovered around $67,400. Speculation arose on the social media platform X, with some users suggesting that massive sell-offs by large holders, or ‘whales’ triggered the price drop.

User @syq pointed out that an individual had sold more than 850 BTC (valued at approximately $55.49 million) on BitMEX, causing the XBT/USDT spot pair to dive to $8,900.

The XBT index on BitMEX monitors the price of Bitcoin, whereas the XBT/USDT pair indicates the price of Bitcoin in terms of Tether (USDT), the leading stablecoin pegged to the US dollar. Despite the turbulence in the spot market, BitMEX’s derivatives markets, worth billions, remained unaffected.

In response to the incident, BitMEX announced via social media that it had initiated an investigation into the large sell orders. Furthermore, BitMEX reassured its users, stating, “The trading platform is fully functional, and all user funds are secure.”

The development follows Bitcoin reaching new all-time highs of almost $74,000 on Mar. 15, before then dropping to $66,885 on Mar. 15. The world’s first cryptocurrency’s price started skyrocketing following the approval of Bitcoin spot exchange-traded fund (ETFs) contracts back in January.

The newly-approved ETF contracts have attracted significant attention from market participants, reaching daily net inflows in excess of $1 billion for the first time on Mar. 12.

Featured image: ideogram

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Radek Zielinski
Tech Journalist

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.