According to Tradingview citing Coinbase prices, BTC crashed to around $46,800 before bouncing back over $50k again during Tuesday morning’s Asian trading session.
The move wiped out over $9,000 in a couple of hours as a cascade of leveraged positions was liquidated on exchanges such as Kraken.
Today’s market crash is brought to you by Kraken’s malfunctioning trade matching engine. pic.twitter.com/m2sBqdTt4M
— Kevin Lu (@luyongxu) February 22, 2021
There has been a recovery from the flash crash but BTC prices are still down 14% from their weekend all-time high of $58,250.
The Coinbase Premium Effect
The U.S. exchange, and one of the world’s largest fiat onramps which recently launched ETH 2.0 staking, is known to have a premium where prices differ from elsewhere. The premium is the gap between the Coinbase Pro USD price and the Binance price in Tether. The higher the premium means that Coinbase whales have been accumulating Bitcoin despite its high price.
According to on-chain analytics provider, CryptoQuant, that Coinbase premium slumped to its lowest level ever at -$1,020 before surging back to +$486.
The data provider’s CEO, Ki Young Ju, commented that whales have been accumulating which means that prices are not likely to fall much lower since Coinbase is one of the market’s largest drivers.
“Remember who’s driving the market. Coinbase whales have been accumulating $BTC in 44-48k range. Even if there are more corrections, it’s unlikely to go down below 44k.”
Coinbase Premium hit the all-time low -$1020 and then skyrocketed +$486.
Remember who’s driving the market. Coinbase whales have been accumulating $BTC in 44-48k range.
Even if there are more corrections, it’s unlikely to go down below 44k.