A slap in the face yesterday for all of those who had just bought the first crypto-currencies, or even on BitMex Long positions are received was. Because within a few hours, the entire crypto market has lost about $ 75 billion in market capitalization. In view of the previous 260 billion, a decline of more than 30 percent.Particularly hard hit the Chainlink rate and the associated Token LINK.This crashed in the context of a Flash Crash to the Ground and was – briefly – in only 0.0001 of the US Dollar. What exactly happened and how LINK is currently, let’s look at now.
Chainlink rate with a 40 percent loss in one day
For many investors in the crypto market LINK was already considered as the Cryptocurrency of the year. Because after a brilliant Performance of the Chainlink rate in the past year, went on the fast-paced rally this year, almost continuously. While Chainlink graduated in the year 2019 with a price gains of more than 525 per cent, the share price rose this year by more than 112 percent. This is the snapshot of the 11.03.2020.Yesterday, Thursday, was, however, not only Bitcoin and co. solid to the bottom of noise, but also Altcoins, such as Chainlink. The on the Ethereum block Chain-based tokens LINK was one of the biggest losers. So this year’s Chainlink course fireworks ended with a slump of slightly more than 40 percent within 24 hours. The price of 1 LINK-the Token was of 3.82 Dollar to 2.24 USD. A huge fall in the price gains of the year is almost complete destroyed.The following Chart shows the extent of the decline:Even if this decline of slightly more than 40 percent was already hard for all the LINK investors, as well as the Chainlink course, there was another, still bitter setback. What exactly happened, let’s have a look in the following section.
Binance Flash Crash pressed a LINK to 0.0001 U.S. dollars
Before we comment further, let’s take a look at the underlying Chart of Trading Pairs LINK/USDT on the Binance spot market. Here, we see that the Chainlink rate dropped to about 13 at a price of 0.0001 US Dollar. In this way, LINK drifted on the edge of a precipice and was listed at a value that is the untold number of 0 dollars is very close.But how can this happen at all? – Well, Yes. In the Spot market the law of supply and demand applies. In addition to the basic rule of supply and demand from the aspect of liquidity is hugely important. The suspected scenario looks like this: starting with the fall in the price of Bitcoin started the first investors their LINK to sell tokens. As the Chainlink rate to drop so initial, which has triggered a cascade of Market-Sell Orders.The best and safest stock market choose for you to opt for the right provider is not always easy. Therefore, we recommend that you take a look at our Bitcoin brokers & exchanges to throw a comparison. Trading on the safest and best exchanges in the world! For Comparison
Lack of liquidity and a cascade of sales is the price drop
These were probably positioned by the investors as soon as possible, the potential profits to hedge or reduce potential losses. Now it is so, that is the presence of two parties is a basic need and feature of Exchanges. Easier formulated: We need a buyer and a seller. If, however, the Abundance of Market-Sell Orders keyword: lack of liquidity), encounters no demand for it (then it comes to a Flash Crash like the current one. In short: there was a lot to LINK tokens in the offer, but no demand.On the other hand, can look forward to a happy individual on the bargain of the day. Because this Trader was allowed to fill his pockets to a Chainlink rate of 0.0001 of the Dollar. In view of the fact that the price of a 1-LINK Token has been stabilized to the Binance, in the meantime, back to 2.24 dollars, this is after all, a rich growth of 2,240,000% percent. In absolute Numbers, the happy Moment expressed: if you make $ 100 within a few minutes, to a Multi-millionaire with a theoretical capacity of 2,24 million dollars.The Chainlink rate breaks within 24 hours to more than 40 percent. The Binance Flash Crash brings LINK in the direction of the zero line. How would you rate the recent decline? Come on in to our Telegram Chat and talk with the experts and the Community!
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