Bitcoin Struggles to Stabilize in Wake of Flash Crash

Bitcoin Struggles to Stabilize in Wake of Flash Crash

Bitcoin, the largest cryptocurrency by market value, edged 1.8% lower from its 5 p.m. ET level on Tuesday to trade at about $45,949.50 apiece, according to CoinDesk. It briefly dropped 17% over the course of a few minutes on Tuesday, and ended the day down about 10%. Other digital assets have also lost ground: ether, the second-largest, slid 2.6% Wednesday.

There hasn’t been a single catalyst to precipitate the recent selloff. A 70% run-up in bitcoin’s value since late July—combined with the euphoria tied to El Salvador adopting bitcoin as a national currency starting Tuesday—could have prompted traders to book profits, analysts say. Investors have also been stepping up bets on other cryptocurrencies in recent months, giving a boost to the Ethereum and Cardano blockchains and driving up prices on nonfungible tokens.