That was a shock! The bitcoin rate fell by nearly 2,200 euros in 15 minutes yesterday evening at 10:30 PM. Not much later, the value of bitcoin recovered somewhat.
Follow the bitcoin course live
On the price chart above you can see the price movement of bitcoin. At around 10 p.m. there seemed to be nothing wrong. At that time, bitcoin reached a temporary peak of 12,200 euros, and higher prices seemed within reach. But that did not happen, the value of bitcoin dropped to 10,600 euros.
How is that so sudden?
Coinbase had a malfunction
Exactly at the time of the price fall, the Coinbase crypto exchange had a malfunction, the entire website was out. Users were shown this message when they tried to access Coinbase:
Many functions of the trading platform were unreachable at that time. Consider for example the mobile app from Coinbase and the APIs. At 23:17 Dutch time, Coinbase was fully accessible again.
Is the price fall due to the outage of Coinbase? That is not immediately to say, but the timing is striking. In addition, Coinbase is one of the largest exchanges worldwide, with a high trading volume. A failure on this stock exchange can therefore influence the price of bitcoin.
But can also be a correction
On news sites, a reason is often sought after a fall in prices. For example, the failure of Coinbase can be a possible cause.
But it could also be that the decline was a natural correction. The bitcoin rate has risen enormously in recent days. Yesterday, bitcoin even reached a value of almost $ 14,000.
It is therefore quite possible that traders decided to take their profit at that point. A small drop can then have a snowball effect, with more and more investors selling bitcoin. And then the course can fall considerably. A small decrease can also lead to a long squeeze, whereby many lungs are liquidated positively, as a result of which the rate falls so that even more long positions are liquidated.
In addition, it is always good to put things into perspective. Are you looking at the bitcoin rate on a weekly level? Then bitcoin has still risen by more than 2,000 euros.