Now, this is an unusual chart. Unlike the usual daily ETH charts on my other posts, this one is a 1-min chart for this afternoon. ETH crashed from a little above $300 to $13. It was fully recovered within 3 minutes. This flash crash is almost predicted by my friend @steveo yesterday.
What is exciting about this one is that while the whole drop took much less than a minute, but the full recovery was relatively slow, around 90 seconds. These gave our quantitative trading (Quant) program plenty of time to catch both the downside and the subsequent upside. The real money was made 5 minutes later, after the first flash crash when it momentarily dropped to be under $150. The program was almost anticipated it and was waiting for the quick drop... What a great trading day!
This is the first flash crash we've traded on ETH. Unlike other mature markets (stocks, bonds, index and commodity futures), there were few other institutional quant traders operating the similar way that we were doing. This gives us a relative edge, for the time being.
As of this writing, ETH trading on Coinbase remains halted. As always, we view any drop on ETH or BTC as temporary, just another trading opportunity.
Stay safe!