As initially highlighted by traders on social media, the price anomaly occurred in the USD Coin (USDC) market, the dollar-pegged stablecoin co-created by Circle and Coinbase.
The price quickly returned back to the $98 range, indicating that what occurred was a flash crash, which is commonly caused by a series of pre-set algorithmic trades causing multiple stop-orders to trigger.
Ethereum previously suffered a flash crash in 2017 when the price dumped from more than $300 to $0.10 when 800 stop-loss and margin liquidation orders were triggered on GDAX. As with the latest flash crash, the price of ETH swiftly recovered and Coinbase issued a refund for investor losses.
There is no indication at this time that significant losses were caused by today’s strange price action, as the ETH/USDC market is fairly thin on Coinbase Pro.
ETH is now down 11.5% over the last 24-hours to $91.13, giving the third largest cryptocurrency a $9.44 billion market cap.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.