The Bitcoin price (BTC/USD) has managed break above the $6,400 level, despite experiencing a flash crash in late Wednesday trading.
The original cryptocurrency had a mostly quiet trading session on Wednesday, as the coin spent the day trying to defend its recent break above the $6,300 mark. While the coin experienced some minor drops, especially in the afternoon, the $6,300 level rarely came under pressure during the session. However, the coin experienced a flash crash in late trading, with its price dropping to an intraday low of $6,208.34. This was immediately followed by a big spike, which allowed Bitcoin to break through the $6,400 barrier. The digital currency rose to as high as $6,448.46, before finishing the day at $6,398.54.
Analysing yesterday’s flash crash, Forbes contributor Billy Bambrough pointed out that Bitcoin short selling and sell order had been growing ahead of the US Securities and Exchange Commission’s eagerly-anticipated decision on a Bitcoin ETF proposal through the Chicago Board of Exchange (CBOE) and brought by New York-based VanEck and blockchain platform SolidX. The SEC is expected to announce its decision later this month, though it could decide to push the deadline further back.
“As bitcoin sell orders and short positions increase it means the digital token is more susceptible to sudden jumps as automated trades try to stay ahead of the market,” Bambrough wrote yesterday.
Bitcoin has been relatively stable after it managed to retake the $6,400 mark in the early hours of today’s trading. The digital coin rose to an intraday high of $6,434.39 earlier today.
As of 09:45 BST, the Bitcoin price stood at $6,408.47, up 0.8% from the same time yesterday. The digital coin’s total market cap currently stands at $110.7 billion, according to data from digital currency tracker Coinmarketcap.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.