Bitcoin and with all other major cryptocurrencies, they have seen a sea of red on Friday morning. Calculating the total capitalization of all these digital assets, these circulations dropped to $264 billion, and this circulation has erased over $10 billion within just few hours, and the average daily trading volume comes to $102 billion.

Top 3 Cryptocurrencies Prices Overview

  • While writing this, the BTC/USD is hanging around $8,250, its mostly unchanged since the beginning of the friday and is down 5% on a day-to-day basis. Bitcoin, being the largest digital asset has moved wildly on Thursday, with a sudden growth of above $9,000. This growth of Bitcoin was followed by a sharp sell-off towards $8,000.
  • The second largest digital cryptocurrency, Ethereum with the current market capital of $27.4 Billion. Ethereum has also suffered a great falling price on Friday, in which Ethereum lost nearly 9% in last 24 hours to trade at $254 by the time of writing.
  • Ripple’s XRP the next digital cryptocurrency got settled under $0.4200 by the time of this writing. Ripple’s XRP is also down by 8% on a day-on-day basis, moving at the same pace with the rest of the market.

What Really Caused BTC Prices to Drop 99% on Kraken?

Another notable thing that happened is that:

A US-based crypto exchange Kraken, “flash crash” saw the prices of Bitcoin on the XBTCAD charts (BTC/CAD) falling down more than 99%.

Bitcoins at Bargain Basement Prices

For five minutes, investors were buying Bitcoin on Kraker with the Canadian Dollars (CAD) at the prices that no one has seen since July 2013. On the XBTCAD charts (BTC/CAD), the prices of Bitcoin crashed over 99% on Thursday evening, falling from $11,299 CAD (US$8,342) to just $101.20 CAD (US$74.72).

During that same period, on the XBTUSD charts (BTC/USD) prices only fell from $8,534 to $7,988 by around 6.4%.

What Caused this Flash Crash On Kraken

When BitcoinerX reached out to Kraken, and they asked them about the incident of this Flash Crash, a member of Kraken’s trading support staff gave them the following explanation:

After a review of the large wick, a volume of 1.391k XBT was traded on our XBTCAD market within a 5 minute period. We aren’t able to prevent any large orders, but this may have been caused by a sell limit order that was placed on the wrong side of the market, and so was executed like a market sell. In many cases, this is due to a high volume client setting the price incorrectly while creating their order.

Their tech support has also noted that the market of Kraken’s XBTCAD shows less liquidity than both of XBTUSD or XBTEUR, which means that if there’s a large order on it CAD Market, it would “likely clear one side of the order book.”

There are different optimistic XBTCAD buyers that has already missed these $100 bitcoins chances or may be there’s one buyer who got lucky, but not the sellers. The prices of this came back to where it was and shows the large seller a big notable loss, because they has sold a lot of XBT at such prices.

Bitcoin’s Future Contract Update

Bitcoin is now presented at the $8,700 mark, having a massive spot growth on it too. But, the BTC futures market which was going on the Back of CME’s unparalleled success off-late. And its noticed that it may play the “periodic spoil sport” once again. The contract of Bitcoin is set to expire on 31 May, with this expiry on the volumes of these derivative products, there will be a considerable price effect on the larger market.

While there are bullish waves in the Digital Market, the rally which is continued since April and kept afloat the spot and the futures cryptocurrency market. CME saw their futures contract rise by over 950% in a single day when the Bitcoin marked gained over 15 percent.

We all have seen that the spot price tends to fluctuate when Futures contract expired in December 2018. And during the expiration week that time, the price tends to drop, then it found support and risen back up.

Case May 2019

Bitcoin Case May 2019
Source: TradingView

The present Bitcoin market is not showing any fear, or any signs that it is going to take a bad move. As right now the price of over $8500, it is going to sustain itself. The [RSI] Relative Strength Index is also holding steady at 52.58, rising from 32.22 in the past 2 hours at the time of writing, while MACD was over the signal line and has shown a pretty rough movements.

Moving towards to the CME Bitcoin contract expiry, and in the past month, there are storms expected that are caused by Bitfinex and Binance. But except these digital assets, bitcoin looks determined. However, keeping the explosion of Wall Street’s BTC trading activity on your mind, the expire could cause a huge of effect on the prices. The thing that will only be known with the time and the movement of it.

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