Bitcoin (BTC) suffered a sudden crash against the Euro on Coinbase (COIN) today. BTC, which recently rose to a record high of $69,325 on Coinbase, suddenly dropped approximately 23.7% for a few minutes.
Bitcoin's immediate drop on Coinbase was dramatic, falling from 60,000 euros to as low as 48,529 euros. This drop occurred shortly after Bitcoin set a new record high of $69,325 in US dollars.
After the record was reached on Coinbase, there was a sudden decline in dollar terms and the BTC price fell below $ 64,000.
Interestingly, the price on Kraken, for example, is only as low as 58,400 euros. The cause of the sudden collapse remains unclear. It took 10 minutes for the price to return to par with other exchanges.
However, similarly, a sudden collapse occurred in the USDC/Euro pair. The parity dropped to 0.75 Euro.
Sudden collapses can often be attributed to several scenarios. One of these is lack of liquidity. In other words, the amount of market sell orders was too high relative to the amount of pending buy orders in the order book. This causes the price to drop to the nearest sufficient bid point.
*This is not investment advice.