Analysts point to overleveraged traders after Bitcoin flash crashes

Traders were caught flat-footed on Sept. 7 after a sharp collapse in the price of (BTC) saw the digital asset fall below $43,000, and this led to widespread liquidations in derivative markets as more than $3.54 billion was liquidated.

Bullish sentiment had been on the rise coming out of the Labor Day holiday weekend in the United States because Bitcoin was officially recognized as legal tender in El Salvador, but the celebration was quickly extinguished by BTC’s 16% plunge.