Generalized breakdowns. A gap of $ 4,000 between two of the largest stock exchanges in the West. The fastest price of bitcoins at $ 1,000 in history. These are just a few of the events that bitcoin traders have encountered on Thursday, a day that has turned out to be one of the most frantic of recent memory.
The price of bitcoin began the day on a slope, reaching $ 15,000 less than 24 hours after reaching $ 13,000. The speed of the rise of bitcoin triggered a mass exodus of the markets of 1945 while traders rushed to increase their bitcoin holdings to take advantage of the rally
This influx of the ancient capital of the altcoin propels bitcoin forward at an even faster rate, and the flagship cryptocurrency begins to hover virtually without resistance. This was particularly true of GDAX, a US commercial platform operated by Coinbase. In the space of 12 hours, the price of bitcoin jumped by $ 5,000, and the last $ 1,000 took only five minutes. At 11:30, the price of bitcoin reached almost $ 20,000, although it eventually encountered resistance after peaking at $ 19,697
The rally left many investors stunned, but perhaps more shockingly still was the fact that it was largely located at GDAX. Although bitcoin has become parabolic on GDAX, it has not exceeded $ 16,000 on Bitstamp or Bitfinex, two other major exchanges that offer trading pairs in US dollars. At one point, the gap between GDAX and Bitfinex soared to $ 4,000 – a gap that would have seemed excessive on Bithumb, a Korean stock exchange known for its high premiums.
Then Bitcoin began to return to Earth. The fall occurred as fast as the ascent, and in minutes, the price of bitcoin had lost more than $ 4,500 on GDAX, although it continued to trade over $ 15,000 – at least briefly.
At this point, as has often been the case, the wave of activity has resulted in cascading interruptions, with traders frantically seeking an operational exchange.
Coinbase reported record traffic at around 11 am, and less than an hour later – shortly after Bitcoin cut $ 19,000 and started diving – GDAX quit orders at the market. Before long, users reported failures on Kraken and Bitfinex, although all of these exchanges were reachable at the time of writing.
ARE ALL DOWN ? pic.twitter.com/gyDmQhxfkS
– Jackie ? (@urboijackie) December 7, 2017
At present, bitcoin is trading at a world average of $ 16,724, which represents an increase of one day by 23%. Such moves are expected from an emerging asset class like cryptocurrency, but, given this current level of volatility, one may wonder if Cboe, CME and other scholarship considering launching future bitcoin will be able to "tame" bitcoin after all.
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