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Ether Experiencing Flash Crash Crypto Market Trends

Ether Experiencing Flash Crash Crypto Market Trends

Cryptocurrencies have gained a bad reputation ever since digital currencies hit the market several years ago. It would make sense for traders to gain confidence in digital currencies after multiple competitive years, but that isn’t the case. The crypto market has volatility built into its fundamental infrastructure, and traders should embrace the flexible market. Ether and Bitcoin took a rollercoaster ride on the crypto market charts that perfectly demonstrates the crypto market’s volatility.  

Ether Bounces Back From Twenty Five Percent Losses

Ether started out 2021 strong, but Ether’s value recently dropped by twenty-five percent. When the Securities and Exchange Commission announced a pending lawsuit against Ripple Labs, Ether’s value benefited substantially. Bitcoin, Ether, and Dogecoin are among the several cryptocurrencies to profit from Ripple Labs’ legal situation. Even with a billion-dollar lawsuit in play, XRP prices have rallied up crypto trading platforms. On February 18th, Ether took massive market losses, with Bitcoin following closely behind. Bitcoin and Ethereum have since bounced back from market losses, thanks to the crypto market’s flexibility. In other regulated financial platforms, Ethereum couldn’t ping up and down crypto charts.

Ethereum infrastructure has reportedly been compromised by trading bots partaking in Miner Extracted Value strategies. Since 2021 began, trading bots have extracted more than one million dollars of Ether. Ether’s market activity has plummeted, even though Ether is the second-largest cryptocurrency in operation. Kraken reported flash crashing activity on Monday, February 22nd, but Ethereum has since gained traction to prevent further crashes.

Kraken Reports Flash Crash Crypto Market Activity for Ether

Flash crash market activity isn’t anything new to the cryptocurrency world. Ethereum crashed nearly one year ago on Kraken and other popular crypto platforms. Ether was trading at $300 per unit and suddenly dropped to $100. Within record time, Ether had gotten back to $200 per unit. The crypto market’s flash crash activity is the most significant reason why outside regulators believe cryptocurrencies are dangerous to modern financial networks. Kraken reported also reported similar flash crash crypto market activity for Ether.

Naysayers have said the crypto market’s volatility was its worse feature, but crypto market analysts strongly disagree. The crypto market steps outside modernized financial limitations and explores alternative options for hedging against inflation. The COVID-19 pandemic pushed Bitcoin and Ether into mainstream trading platforms, but all parties didn’t warmly welcome the digital assets. Experts believe digital assets have a profitable future in today’s tech advanced society.

Understanding the Crypto Market's Real-Time Consequences

Unfortunately, financial traders who are new to the crypto market don’t fully understand crypto’s real-time consequences. Elon Musk has repeated influence crypto market prices with suggestive tweets and Tesla’s recent billion-dollar Bitcoin investment. On February 23rd, Ether’s price tumbled by nearly nine percent. Ether’s market activity paled in comparison to XRP’s unbalanced values.

Several crypto market experts think the market’s recent losses and gains are prime examples of positive volatility. Experienced crypto traders are passing on warnings to new crypto investors seeking profits in the digital asset world. The crypto market offers ample opportunities for financial growth, but downward market trends can lead to financial ruin in exceptional circumstances. Traders urge others to learn as much as possible about the crypto world before investing in Ether, Bitcoin, or other digital currencies. When trading digital assets, traders must gain a fundamental understanding of the flash crash market activity.