TL;DR
- Bitcoin trades at $617.12, steady amid global market turmoil
- GBP flash crash: pound plunges 6-9% against USD in 2 minutes
- ETH drops to $12.67 as Ethereum ecosystem continues post-DAO recovery
- Fed Governor Brainard highlights distributed ledger technology implications for payments
- Total crypto market cap stabilizes around $11.7 billion
The Global Context
On October 7, 2016, the cryptocurrency world witnessed unprecedented events that underscored Bitcoin’s growing role as a potential digital safe haven. While traditional financial markets experienced chaos with the pound sterling flash crash, Bitcoin demonstrated remarkable stability, trading at $617.12 throughout the day.
The Sterling Flash Crash
The pound sterling experienced a dramatic flash crash on October 7, dropping from approximately $1.26 to as low as $1.14 in just two minutes of trading. This represented a staggering 6-9% decline against the US dollar.
Bitcoin’s Stable Performance
Amidst this chaos, Bitcoin proved its mettle as a relatively stable asset. With a price of $617.12 and showing only modest movement, the cryptocurrency demonstrated characteristics that many investors associate with digital gold.
Why This Matters
The events of October 7, 2016, revealed important insights into the cryptocurrency market. Bitcoin demonstrated that it could function as a relatively stable asset during periods of traditional market turmoil, suggesting cryptocurrencies might evolve into legitimate assets for portfolio diversification.
Disclaimer
This article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments carry significant risks.
Pound drops 6-9% in two minutes and Bitcoin at $617 doesn’t move. That’s the uncorrelated asset thesis in action.
the flash crash was probably algorithmic trading gone wrong, not a real market move. but btc sitting at 617 like nothing happened was a signal for sure
algorithms caused the GBP crash and algorithms kept BTC flat. different algorithms same market lol
$11.7B total crypto market cap was a rounding error compared to forex markets. The flash crash barely registered in crypto.
forex_ghost_ 11.7B total crypto market cap was smaller than many individual stocks. the flash crash proved btc was uncorrelated before that was a buzzword
the 11.7B total marketcap feels crazy looking back. BTC alone does that volume in an hour now
forex_ghost_ 11.7B total market cap and btc was the calmest asset in the world that day. flash crashes separate real markets from casino floors
pound fell 6 to 9 percent in two minutes while 617 dollar btc never budged an inch
617 dollar btc sitting still while fiat markets panic. wonder how many people saw that and went down the rabbit hole
fx_refugee_ btc at 617 holding steady while gbp dropped 9% in 2 minutes was the first time i thought ok this thing might actually work
617 dollar btc sitting flat while fiat panicked sent a lot of people straight down the rabbit hole
Fed Governor Brainard mentioning DLT in a speech about payments was huge for 2016. Most policymakers wouldn’t touch crypto back then.
brainard mentioning DLT in 2016 was ahead of her time. took another 3 years before most central banks even acknowledged blockchain
brainard was one of the few fed officials who actually understood the tech. most of her colleagues thought bitcoin was monopoly money
pound dropping to 1.14 from 1.26 in 2 minutes and BTC barely moved. that was the day the safe haven thesis got real data
GBP dropping 9% in 2 minutes while BTC sat at 617 completely unfazed. this was the day bitcoin became a macro asset in my eyes
btc at 617 while gbp dropped 9% in 120 seconds. this was the day the uncorrelated asset thesis was born and a decade later its still debatable
october_7_apologist btc was uncorrelated because it was too small to matter. 11.7B market cap is a rounding error. now that institutions are in btc correlates with everything
Matyas H. ETH at $12.67 is the detail everyone skips. post DAO recovery and nobody knew if ethereum would even survive. now look at it. funny how things work out
the gbp flash crash was algorithmic stop-hunting not a real fundamental move. but btc sitting at 617 through it was the first time normies saw crypto as stability. ironic given the reputation
BTC at $617 holding steady while GBP dropped 9% in 2 minutes was the first time I saw bitcoin behave like a safe haven. narrative started here not in 2020
Lars E. BTC at 617 looking stable while GBP melted down was pure luck not safe haven behavior. it was illiquid on both sides
the pound flash crash was caused by a fat finger in Asian session low liquidity. calling BTC a safe haven because it didnt move during a 2 minute FX glitch is a stretch
11.7B total crypto market cap. now thats a number that ages you. BTC alone does that volume in an hour now