🚨 Flash Crash 🚨
They didn't wait for June 12..
15-minute deep operation. The instant rise in BTC dominance level tells it all! Market makers (Stock Exchanges) have made 300 million dollars according to the data received in these 15 minutes!
The only winner: Stock markets!
Binance transactions are frozen! Just like before the 2021 bull season, history is repeating itself! (Continue reading)
👉"Flash crash" is a term called "sudden collapse" in Turkish and means a dramatic fall in prices in a very short period of time, usually in stock, commodity or foreign exchange markets. Such crashes usually occur within seconds or minutes, after which prices can recover quickly.
### Causes of Flash Crashes
High Frequency Trading: Automated trading systems can process thousands of trades in seconds. The simultaneous execution of large volumes of orders by these algorithms can suddenly reduce market liquidity and lead to sharp declines in prices.
Withdrawal of Market Makers: Market makers constantly trade to maintain liquidity in the markets. However, in situations of high volatility, these actors may withdraw from the market, causing liquidity to decrease and prices to fall rapidly.
Technical Malfunctions: Technical errors in market systems can lead to large orders being processed incorrectly or canceled, resulting in sudden price movements.
Large Volume Orders: Large orders entered by large investors or funds can create sudden pressure on the market and cause prices to change rapidly.
***So Why Did Binance Transactions Frozen?
Exchanges often use mechanisms such as circuit breakers to prevent flash crashes. These mechanisms help normalize the market by temporarily halting transactions when extreme price movements occur over a period of time.
