Bitcoin witnessed a sudden flash crash to about $24,111 on the BTC/USD1 trading pair on Binance, before quickly rebounding to $87,000 in seconds. Per the exchange data, the move appeared isolated to USD1, the stablecoin launched by Trump family-backed World Liberty Financial. Source: Binance This type of “flash wicks” occurs when liquidity thins and order books lose depth. The BTC/USDT trading pair has remained stable after resuming. Bitcoin Flash Wicks and Quick Reversal During non-peak trading hour ...

Core Insights - Bitcoin is experiencing gains after significant losses, raising questions about potential recovery in the market [1] - The current situation in the crypto market is complex, with institutional investment and regulatory changes playing crucial roles [3][5] Institutional Investment - Institutional investment is a double-edged sword; while it has contributed to price increases, it has also intensified market crashes [4] - Notable institutions like Harvard, BlackRock, and Fidelity are increasing their investments in Bitcoin, indicating a significant shift in market dynamics [4] Regulatory Changes - Recent regulatory changes in the U.S. are seen as positive for the crypto market, contrasting previous sentiments from SEC leadership [5] Market Trends - The current downturn in Bitcoin and other cryptocurrencies may not signify a permanent shift but rather a temporary drawdown [6][7] - Ethereum's utility in stablecoin transactions and real-world asset tokenization presents a cautiously optimistic outlook for its future [7] Leverage in the Market - Excessive leverage in the crypto market is a significant concern, with recent liquidations contributing to current price volatility [9][10] - The correlation between Bitcoin and tech stocks suggests that Bitcoin is behaving more like a risky asset rather than a safe haven [13][14]