Just before 6am ET, cryptocurrencies suddenly flash crashed, tumbling on no news with some plunging as much as 12%, after a largely unchanged overnight session.
Bitcoin, the world’s biggest digital asset, erased gains and fell more than 3% in about minutes, tumbling back under $7000 after trading in the mid-$7300 range earlier. Litecoin, Ethereum and Ripple followed, with Ethereum crashing by as much as 12%, while litecoin and ripple sank over 8%. There was no catalyst or news behind the sell-off, although as Bloomberg’s Andrew Cinko notes, “perhaps its just part of the risk-off mentality gripping all markets amid the latest round of weakness in emerging markets.”
The sell-off appears to have stabilized, but so far there is little buying impetus as traders scramble to find what the cause of the selling was.
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