Bitcoin price crashed below $ 30,000 as traders panicked about a double spend technical flaw

Bitcoin price fell below $ 30,000 on Friday when traders panicked about a technical flaw that allows people to spend the same cryptocurrency unit twice. Specifically, according to statistics from BitMEX Research, the Bitcoin Blockchain has found a small double spend of about 0.00062063 BTC, or $ 21.

Bitcoin price crashed below $ 30,000 as traders panicked about a double spend technical flaw

According to BitMEX Research, the Bitcoin blockchain detected a small double spend of around 0.00062063 BTC ($ 21). The claim prompted the cryptocurrency community to see vulnerabilities in Bitcoin’s public ledger system — a 51% attack that allows miners to take control over the network.

But concerns eased later when BitMEX CTO Paolo Ardoino explained that double spending did not happen.

He stated:

“What happened is that two blocks were mined simultaneously, which led to a chain reorganization. It did not result in double-spending.”

Meanwhile, the cost of buying a Bitcoin fell by around 9% during the aforementioned panic process, hitting $ 28,372 on US exchange Coinbase. Other factors, including popular bearish correction and profit-taking, also contributed to this slippage. But the accident was very short. Bitcoin rebounded rapidly when it touched below $ 30,000, showing new demand for the cryptocurrency near the said price.

At press time, BTC is trading below $ 30,000, down more than 5% in the past 24 hours.

bitcoin-price-crashed-below-30000-as-traders-panicked-about-a-double-spend-technical-flaw

BTC/USD 4-hour chart | Source: TradingView

Analysts note that Bitcoin has a better chance of further retreat thanks to the so-called bullish divergence pattern. In it, the price drops, but its momentum goes up.

Bitcoin experienced a similar recovery – around 49% – after closing below $ 30,000 in the first week of January. Since then, the cryptocurrency appears to have formed a significant area of ​​support around the said level, proving it with another rally in January 11 trading.

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