Bitcoin experienced a flash crash on Tuesday morning, dropping nearly $600 in minutes. While some industry analysts described the crash as “mysterious”, other analysts claim the crash was linked to news from Russia.
Meanwhile, there’s no real evidence that this flash crash actually occurred.
Right now, there are only two major sources reporting the bitcoin flash crash. One news source, CNBC, described the crash as a “mystery flash crash” as bitcoin “dropped by over $600 to a low of $4,200 at roughly 9:00 a.m. London time.”
The “mystery” about this flash crash is that it doesn’t appear on any of the four major exchanges that make up Coindesk’s bitcoin price. However, the flash crash still appeared on Coindesk’s bitcoin price chart, according to CNBC.
The other major news source reporting on the crash is Coin Telegraph, which linked the flash crash to news from Russia. Specifically, Russia’s central bank is rumored to be considering a ban on cryptocurrency exchanges.
Coin Telegraph cited a report by The Economic Times of India. That report consists of just three brief paragraphs, one of which is a brief statement by Russian Central Bank First Deputy Governor Sergeie Shvetsov, who said on Tuesday,
“We can not stand apart. We can not give direct and easy access to such dubious instruments for retail (investors).”
Shvetsov was speaking to a conference and referring to households in his speech. No further information was available online regarding the report.
Coin Telegraph claimed the flash crash led to a sudden spike in the value of bitcoin, as the price dropped $600 to $4,200 at 9am London time, before quickly recovering to $4784 by 9:10 am London time.
Meanwhile, as of 4:30pm EST on Tuesday, October 10, the price of bitcoin is at $4900.53 – edging towards an all-time high.
Coindesk’s Chart Shows No Evidence of a Price Crash
Both CNBC and Coin Telegraph reported bitcoin’s price crash, stating that it dropped to $4200 on Coindesk’s bitcoin to USD price index.
However, a quick glance at Coindesk’s price chart for bitcoin shows no evidence of a price crash. We can’t find any signs of a dip below $4750 over the past 24 hours – which corresponds to the price charts on most other bitcoin websites.
You can check the index yourself here.
If a bitcoin flash crash happens and it’s only reported by CNBC and Coin Telegraph, then did that flash crash really happen?