Published on Mar 24, 2022

Flash Crash


In Cryptocurrency, Flash Crash is a phenomenon in which many holders of a particular cryptocurrency asset suddenly decide to sell it off. The phenomenon either leads to a rapid rise or a fall in the value of cryptocurrencies. Unlike market crashes, in flash crashes the price tends to recover rapidly.

There are high chances that the price would get to its original level. There are various reasons for flash crashes. It can be the result of price manipulation by an extremely large block of trades or organizations using fraudulent methods such as stop hunting.

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