The price of bitcoin fell by $600 in just 30 minutes to take its value below $10,000.
The flash crash resulted in around $10 billion being wiped from the cryptocurrency‘s overall value and has called into question recent positive price predictions.
In the hours following the flash crash, which took place on Wednesday night, the price of bitcoin continued to fall steadily and is currently trading at around $9,500.
Bitcoin’s price remains far above the point it started the year, when it was trading below $4,000. But it is a long way off its record price of $20,000, which it reached in late 2017.
The cryptocurrency’s notorious price volatility has seen its value fluctuate between $9,000 and $13,000 in recent months, though it was experiencing a relative period of stability before the most recent fall.
The latest price crash comes after one market analyst predicted bitcoin’s “new normal bottom” was now at $10,000, having survived several mini dips that failed to take its price below this milestone.
According to Nigel Green, the chief executive officer of financial advisory firm deVere Group, it is only a matter of time until bitcoin returns above this level.
“Looking at its performance this year, I believe that the new normal bottom price for bitcoin is $10,000,” he told The Independent.
“It bounces at this price. If it fluctuates below this level, it shoots back up again. We have seen this in action on Monday when bitcoin hit $10,500 in a matter of minutes.”
Mr Green stood by his recent prediction that bitcoin’s price will reach $15,000 in the near future, citing geopolitical uncertainty, technical network improvements, and growing public awareness about cryptocurrencies.
“Cryptocurrencies, and in particular bitcoin, are increasingly part of mainstream finance,” he said.
“There is increasing global acceptance that cryptocurrencies are not only the future of money, but increasingly the money of today.”