Bitcoin Rebounds After Flash Crash Sends Prices Down To $50,000

Bitcoin prices slumped over the weekend, falling to a low of $50,000 on Sunday before rebounding, as a flash crash impacted leading cryptoassets.

gold-colored Bitcoin

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Bitcoin (BITCOMP), ethereum (ETH-X) and XRP (XRP-X), as well as most other major altcoins, were all hit by a sudden flash crash early Sunday morning, sending prices down sharply.

Power outages in China, which consequently caused a huge drop in the bitcoin network hashrate, are being cited as a potential reason for the big pullback.

Prices have climbed off lows overnight, with bitcoin back above $56,000 this morning, and peers such as Cardano also recovering, although both are around 10% off all time highs.

Ethereum hard fork sends price to record high

Ethereum surged above $2,500 a coin last week as its long-awaited Berlin hard fork went live.

The second-largest cryptoasset by market capitalization introduced the hard fork to try to solve a significant issue for the network - high gas fees. Gas fees have shot up in the last 12 months, with users seeing transaction costs rocket from below 10 cents to a high of $40 in February of this year.

Currently, the average fee is close to $19, but this is far higher than the minimal fees charged by peers such as Cardano and Algorand.

The network’s hard fork has changed the algorithm that calculates gas fees, with the aim being to reduce costs that may otherwise push users on to other platforms.

Having surged to a new high, this weekend’s flash crash has seen the price fall back, leaving it trading around $2,250.

Coinbase lists on main market via IPO 

Coinbase (COIN) has completed its IPO in the US as the cryptoasset market continues to enter mainstream financial markets.

Ben Laidler, eToro's global market analyst, said: "The Coinbase IPO is significant for a few reasons. Firstly, it reflects the institutionalisation and development of the crypto industry. 

"Secondly, it demonstrates how public markets are changing. We've seen a record number of US IPOs raising money through non-traditional approaches, such as direct listings and SPACs. 

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Disclaimer: This article should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been ...

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