Bitcoin flash crash occurred after a single weekend sell order of 24,000 BTC (~$2.7B) caused a rapid 3.74% drop and $623M in liquidations; experts say this liquidity-driven event is a healthy market reset and the broader Bitcoin market outlook remains bullish.
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24,000 BTC sell order triggered a sub-10-minute 3.74% correction
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Over $623 million in liquidations occurred during the flash crash.
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Whale still holds ~152,874 BTC (~$17.3B); on-chain and options data show continued bullish positioning.
Bitcoin flash crash: 24,000 BTC sell triggered a rapid correction and $623M liquidations — read expert analysis and market outlook from COINOTAG.
What caused the Bitcoin flash crash?
Bitcoin flash crash was caused by a single large weekend sell order of 24,000 BTC (~$2.7 billion), amplified by thin weekend liquidity and a buildup of leveraged long positions. The order produced a fast 3.74% correction and triggered approximately $623 million in liquidations, per on-chain liquidations data.
How did the 24,000 BTC sell-off trigger massive liquidations?
The sell order hit low-liquidity weekend markets, moving price rapidly and triggering exchange margin calls. Short-term leverage was high, so stop-losses and forced liquidations cascaded. Options and order-book dynamics amplified price moves in under ten minutes.
| Metric | Value |
|---|---|
| Sell order size | 24,000 BTC (~$2.7B) |
| Price correction | 3.74% in <10 minutes |
| Liquidations | $623 million |
| Whale remaining holdings | 152,874 BTC (~$17.3B) |
| Recent trading price (post-drawdown) | ~$113,169 (up 2.41% from weekend low) |
Why do experts view the sell-off as a healthy market event?
Experts note that selective whale selling can be part of market maturation by distributing supply to new entrants. Traders such as Alex Krüger and Vijay Boyapati have commented that liquidation-driven price swings clear short-term momentum and allow stronger bullish trends to resume.
What on-chain and options data indicate about market direction?
On-chain analytics show the whale continues to hold substantial BTC, which suggests the sell order was selective, not a full exit. Options positioning indicates bullish strikes concentrated around $135,000–$155,000, implying traders remain optimistic despite the short-term drawdown.
Frequently Asked Questions
How large was the weekend sell order that caused the crash?
The weekend sell order was 24,000 BTC, approximately $2.7 billion at execution. This concentrated sale in thin liquidity conditions produced a sharp 3.74% move and roughly $623 million in liquidations.
Is this flash crash a sign that Bitcoin is entering a bear market?
No. Market participants and on-chain indicators point to continued bullish sentiment. The drawdown is viewed as a short-term liquidity event rather than structural weakness.
Key Takeaways
- Immediate cause: A 24,000 BTC weekend sell order created a rapid 3.74% correction.
- Market impact: Roughly $623 million in liquidations, amplified by thin weekend liquidity and leveraged longs.
- Outlook: On-chain holdings and options data suggest continued bullish positioning; the event may support healthier price discovery.
Conclusion
The recent Bitcoin flash crash was driven by a concentrated 24,000 BTC sell order in a thin liquidity window, producing a short-lived 3.74% drawdown and substantial liquidations. Market structure and expert commentary indicate this was a liquidity reset rather than a shift to bearish fundamentals. Traders should monitor order-book depth, leverage metrics, and on-chain balances to navigate similar events and position for the likely bullish medium-term trend.
