Bitcoin Price Slides 2% After Deribit, Coinbase Flash Crash
Another flash crash has occurred for bitcoin (BTC), this time on the Coinbase Pro and Deribit exchanges.
![shutterstock_1358175914](https://www.coindesk.com/resizer/XteTOsSLe3iAV-pKcHTJbRuuP-o=/567x378/filters:quality(80):format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/747CHKK5KNCHNPYK7FC7YWEMFU.jpg)
Update (Nov. 1, 15:03 UTC): Deribit will reimburse over $1.3 million in losses from the BTC index calculation data issue witnessed at 21:00:00 UTC on October 31, 2019.
Another flash crash has occurred for bitcoin (BTC), this time appearing on the Coinbase Pro and Deribit exchanges.
At 19:55 UTC on Oct. 31, BTC's spot price dipped from $9,260 to $9,055 in quick succession on Coinbase's exchange for professional traders.
An hour later, Deribit, a futures and options exchange for BTC, saw futures prices drop from $9,150 to $7,720 before bouncing back above $9,000 within minutes.
The move caught traders unawares as multiple orders were executed in the process.
Crypto trader @Crypto_boy1 took to Twitter to slam Deribit for telling customers that trades would not be rolled back and that they should manage positions accordingly.
“It’s over. I would withdraw all funds and never use this exchange again If I was a user” he said.
5-minute chart
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As seen above, BTC dropped to a low of $7,720 on Deribit, sending shock waves throughout the derivatives market. Liquidations shot through the roof on Bitmex, for example.
![skew-bitmex-xbtusd-liquidations-2019-11-01t00-21_26](https://www.coindesk.com/resizer/9o6Het5Dv5yYE3SRlemZ91m_Wm4=/560x514/filters:quality(80):format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/QASQOFRKWJHQ3DSC2U2K2IKO3A.png)
However, in an official response on the same thread, Deribit said it would attempt to rectify the incident by changing the price of stop-loss trades to a fixed BTC level, depending on the product.
“Equity will be brought back to the pre-incident level, around index price $9,160,” the exchange said.
5-minute chart
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An hour before Deribit’s incident, Coinbase Pro users also experienced problems as stop-loss orders were “deleted” right before BTC’s sharp drop from $9,260 to $9,055.
According to a user of CoinDesk’s Dojo trading forum who goes by the handle Radyohead, the price dropped below their stop-loss order, yet no sale was executed:
Prices have since rebounded, currently changing hands for $9,145, while the issues on both exchanges appear to be resolved.
Disclosure: This author holds no cryptocurrency at time of writing.
Ride image via Shutterstock; Charts via TradingView