What Is a Flash Crash?
A flash crash is a market condition where an asset’s price falls very rapidly within a very brief time interval, then rebounds back to previous levels in an equally short time.
In the cryptocurrency space, a flash crash can take place within hours or even minutes.
High-frequency trading is among the leading causes of such catastrophes in the crypto market.
Navigating Price Volatility
The volatility of digital currencies naturally includes extreme downward price movements.
In turn, gripping selling pressures lead to rapid shifts in crypto prices, which result in flash crashes in many cases.