Bitcoin flash crash sees biggest price drop in cryptocurrency history

Bitcoin flash crash sees biggest price drop in cryptocurrency history

Bitcoin fell in price from $34,000 to below $29,000 on Monday morning (Getty Images/iStockphoto) Bitcoin flash crash sees biggest price drop in cryptocurrency history
Sudden drop in value comes just hours after cryptocurrency hit new all-time high
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The price of bitcoin has plummeted by more than $5,000 in what is the single biggest crash in its history.
After hitting a new all-time high on Sunday above $34,000 (£25,000), the cryptocurrency’s price began to tumble before suddenly dropping below $29,000 on Monday morning.
Bitcoin had never previously lost more than $4,000 in the space of a few hours, though more severe crashes in terms of percentage losses were seen following the 2017 bull run.
The latest flash crash coincided with stock markets around the world hitting record highs in the first trading day of 2021.
The cryptocurrency has since recovered slightly and is currently trading at around the $30,000 mark. Read more
The losses once again highlight the volatility of bitcoin, which is increasingly being viewed as a store of value rather than a medium of exchange. Bitcoin’s volatile history in pictures Show all 10 1 /10 Bitcoin’s volatile history in pictures Bitcoin’s volatile history in pictures Satoshi Nakamoto creates the first bitcoin block in 2009 On 3 January, 2009, the genesis block of bitcoin appeared. It came less than a year after the pseudonymous creator Satoshi Nakamoto detailed the cryptocurrency in a paper titled ‘Bitcoin: A peer-to-Peer Electronic Cash System’ Reuters Bitcoin’s volatile history in pictures Bitcoin is used as a currency for the first time On 22 May, 2010, the first ever real-world bitcoin transaction took place. Lazlo Hanyecz bought two pizzas for 10,000 bitcoins – the equivalent of $90 million at today’s prices Lazlo Hanyecz Bitcoin’s volatile history in pictures Silk Road opens for business Bitcoin soon gained notoriety for its use on the dark web. The Silk Road marketplace, established in 2011, was the first of hundreds of sites to offer illegal drugs and services in exchange for bitcoin Screenshot Bitcoin’s volatile history in pictures The first bitcoin ATM appears On 29 October, 2013, the first ever bitcoin ATM was installed in a coffee shop in Vancouver, Canada. The machine allowed people to exchange bitcoins for cash Reuters Bitcoin’s volatile history in pictures The fall of MtGox The world’s biggest bitcoin exchange, MtGox, filed for bankruptcy in February 2014 after losing almost 750,000 of its customers bitcoins. At the time, this was around 7 per cent of all bitcoins and the market inevitably crashed Getty Images Bitcoin’s volatile history in pictures Would the real Satoshi Nakamoto please stand up In 2015, Australian police raided the home of Craig Wright after the entrepreneur claimed he was Satoshi Nakamoto. He later rescinded the claim Getty Images Bitcoin’s volatile history in pictures Bitcoin’s big split On 1 August, 2017, an unresolvable dispute within the bitcoin community saw the network split. The fork of bitcoin’s underlying blockchain technology spawned a new cryptocurrency: Bitcoin cash Reuters Bitcoin’s volatile history in pictures Bitcoin’s price sky rockets Towards the end of 2017, the price of bitcoin surged to almost $20,000. This represented a 1,300 per cent increase from its price at the start of the year Reuters Bitcoin’s volatile history in pictures What goes up… Bitcoin price crashes spectacularly, losing half of its value in a matter of days Getty Images Bitcoin’s volatile history in pictures Bitcoin plunges The cryptocurrency eventually bottoms out below $4,000 in 2019 before slowly rebuilding momentum to outperform more traditional assets Getty Images
Wild swings in value make it inefficient to use as an everyday currency; however, its inbuilt scarcity makes it an attractive investment option at a time when measures like quantitative easing are devaluing traditional fiat currencies. INDY/ LIFE Newsletter Be inspired with the latest lifestyle trends every week Please enter your email address Please enter a valid email address Please enter a valid email address SIGN UP Thanks for signing up to the INDY/LIFE newsletter {{#verifyErrors}} {{message}} {{/verifyErrors}} {{^verifyErrors}} {{message}} {{/verifyErrors}} The Independent would like to keep you informed about offers, events and updates by email, please tick the box if you would like to be contacted
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