The entire crypto community watched in awe as Ethereum price on Coinbase Pro (was GDAX) sank to $13,05. The price of the coin is barely above $100 today, December 6th. At the time of writing, ETH is experiencing massive losses.
However, the coin’s price flash crashed on Coinbase, and the difference is more than noticeable, especially when it comes to the ETH/USDC trading pair.
$ETH flashcrashed to $13 on GDAX!
Filled all my low orders. ALL OF THEM.
What the FUCK just happened?
Who else got filled on this? pic.twitter.com/h0Kseg97ul
— Cole Garner (@ColeGarnerBTC) December 6, 2018
The reasons behind such a massive price drop remain unknown. As always, there are speculations, such as the possibility of an ICO’s funds cash-out, or even a crypto whale making a mistake in placing a sell order. As a result, all the buy orders down to $13 got filled, before arbitrage makers lifted the price back to $100. This means immediate substantial profits of up to 770% to the lucky orders.
To those that just sold $ETH for $10 on Coinbase, congratulations!
You matched the entire bear market in mere seconds. #EfficiencyIsImportant
— Zissou™ (@ZeusZissou) December 6, 2018
As we mentioned in our Bitcoin and Altcoins trading tips, placing low orders might sometimes be very wise:
A successful strategy regarding this is placing very low buy orders. About a week ago a crazy dump occurred, selling off Augor coin down to 25% of its value! After a short while the market recovered slightly and anyone who had low buy these low orders could easily double or triple their investment. Placing buy orders requires special care, don’t wake up when you’re far away from the market to find your buy order is suddenly higher than the current market price.