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12/12/2024 4:38:36 PM (GMT+1)

What is a "Flash Crash" and how does it impact the market?

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"Flash Crash" refers to a sharp and short-term drop in asset prices that occurs within minutes. This phenomenon is often triggered by automated trading systems, algorithms, or large orders that can significantly alter market dynamics. In the cryptocurrency world, such drops can lead to mass liquidations of positions, increased volatility, and panic sell-offs. When prices recover, the market may experience even greater instability, making it difficult to predict future movements. It is important to be prepared for such events, especially in new and unstable markets.


This material was prepared by Khachatur Davtyan, developed and translated by artificial intelligence.



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