Bitcoin experienced a sudden 30% drop on the decentralized exchange Lighter, briefly falling below $48,000, despite a broader market rally. This flash crash, which lasted only seconds, was attributed to thin liquidity on Lighter, where a single sell order of approximately 1,000 bitcoin, valued at $67 million, wiped out available bids. The incident highlighted the volatility risks on newer decentralized exchanges with shallow order books.
While Bitcoin's price on Lighter plunged, the cryptocurrency surged from below $64,000 to over $69,000 on other platforms, marking a significant intraday rally. Lighter, a decentralized perpetuals exchange, has seen fluctuating activity levels, with monthly volumes dropping to $70 billion in February from a peak of $292 billion last November, as traders shifted away post-token airdrop.
Bitcoin Plummets 30% on Lighter Amid Broader Crypto Rally
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