Bitcoin, the prominent crypto token, has been making huge price uptrends lately. However, during the respective journey, the top crypto coin has also gone through some significant price crashes, raising speculations about the potential causes.A popular crypto statistics provider Kaiko recently provided some exclusive insights regarding this development.
Kaiko Discloses a Couple of Bitcoin Price Dips Over the Recent Weeks
The data platform took to Twitter and disclosed that Bitcoin went through such flash crashes more than once. It claimed that the biggest crypto coin saw these slumps a couple of times in recent weeks. As per Kaiko, one such instance took place on the 18th of this month. At that time, the trading pair BTC-USDT saw a temporary crash in terms of price.
As a result of this, the pair plunged to $7.8K on Bitmex for a moment. On the other hand, [ccpw id=60415] was changing hands at up to $66K on the rest of the crypto exchanges. The crypto exchange shared a statement concerning the matter on X. It attributed the plunge to massive selling on behalf of a few accounts. It also assures the investors to delve into the issue to discover likely trader misconduct.
The Price Crashes Reportedly Originate from Low Liquidity as well as Fragmentation
While discussing the likely factors behind this, Kaiko pointed toward the low liquidity as well as fragmentation. It also said that the potential manipulation endeavors also add to this scenario. According to Kaiko, these things are not normally present in conventional markets. Before that, in the early days of this month, the prices of BTC-EUR experienced such dips on Coinbase.
The pair slumped to €48K from the previous €63K. This disclosed a sharp deviation from the rest of the markets. The respective events indicate the fragmentation of the liquidity around exchanges as well as trading pairs.
