WATCH: What are the Main Takeaways from Deribit's $1.3 Million Flash-Crash?

Delphi Digital Co-Founder Yan Liberman joined CoinDesk's Brad Keoun on Monday, Nov. 4, to talk about last week's flash crash on Deribit, a Netherlands-based cryptocurrency exchange, and the outlook for bitcoin.

Because all the derivatives contracts are priced off of that index, it caused this massive flood of liquidations where, you know, a lot of longs got liquidated because the price tanked.

BK: What about that $1.3 million? That's a lot of money to pay for what appears to just be a snafu.

You have to realize that there's a lot of value, and in signaling that you do value your customers.

There's a lot of value, and I'm sure their customers kind of feel the same way.

A lot of people have various predictions for how high bitcoin could go.

I'm just curious, based on the past couple weeks of trading and maybe looking at some of the technical indicators, have we received any new information on whether bitcoin prices could go a lot lower?

What we see with bitcoin is price begets volume begets price, and this is a very cyclical situation.

What we can't really account for is this momentary influx of demand that can come from a wide variety of sources, and whenever that happens, you have all the individual traders now that have a lot of cash on the sidelines and just basically looking at it to get the best entry possible.

That's where we will start to see these really, really aggressive moves up.