In what seems like a development which is the latest blow to bitcoin prices, Bitcoin prices have slumped to its lowest level since May late last week. The decline has since been largely attributed to a worsening short-term news outlook, as well as the industry’s margin traders, though alternative theories have been proposed.

At press time, at least one notable industry analyst, along with a host of exchange users are suggesting that margin trading may have once again played a factor in today’s decline, as a flash crash observed on popular bitcoin trading platform BTC-e caused the price of bitcoin on its exchange to decline sharply to a low of $309.

That price was observed on BTC-e at roughly 07:36 (UTC), and was followed by similar declines across other major bitcoin trading platforms including Bitstamp, Huobi and OKCoin, market analysis shows. Notably, this is not the first time such a large flash crash has been observed on BTC-e. For example, this February, the price on the exchange declined nearly $500 in just over one minute.

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Data analysis shows other major exchanges soon responded to declining prices observed on BTC-e, with a sharp drop observed across their order books at roughly 07:37 (UTC). By 07:46, the price of bitcoin on Bitstamp began its decline, landing roughly $20 below its starting point to touch $462.01 and hitting a daily low price of $442 at roughly 08:51.

Major China-based Huobi and OKCoin also recorded less notable drops during this time. For example, Huobi’s price decline began at 07:37, dropping from ¥2880.1 to ¥2788.1 by 07:45. Likewise, OKCoin saw prices on its exchange fall from ¥2880.4 at 07:36 to ¥2785.3 by 07:45.

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