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Bitcoin Tumbles 25% In Hours

Tyler Durden's picture




 

The dramamine ride aboard the BTC rollercoaster continues. After crossing $200 yesterday and hitting $260 this morning, Bitcoin has since tumbled to $200, or a 25% drop in hours, on surprisingly light volume. Only adults should be on board this particular rollercoaster because if the mysterious buyer(s) decide to offload their amassed positions, there will be no stops protecting on the downside. As usual, and as we warned earlier today when BTC hit its record high, "those who absolutely must chase this runaway chart should not "invest" one penny more than they are comfortable losing." In fact, at this point it is perhaps only the most habitual of momentum chasing gamblers that should be involved in the name, especially if shorting BTC is indeed as reported earlier, about to become a possibility.

And some amusing insights into the virtual currency from dpa-AFX' Scott Solano, including a "technical" perspective:

 

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Wed, 04/10/2013 - 14:01 | 3432370 The Abstraction...
The Abstraction of Justice's picture

Looks like I will have to get out my silver parachute before the Zeppelin falls.

Wed, 04/10/2013 - 14:28 | 3432519 francis_sawyer
francis_sawyer's picture

The banksters suggest you sell all your gold & silver at a "cash for Gold", [or better yet ~ take out a loan] & BTFD in BTC...

Wed, 04/10/2013 - 14:38 | 3432638 The Abstraction...
The Abstraction of Justice's picture

It is a pity that BTC falling does not correspond to silver rising...as of yet.

Wed, 04/10/2013 - 14:58 | 3432800 francis_sawyer
francis_sawyer's picture

I'm not going to kick you around here [because it sucks watching the value of something you think you own go down]... Don't think it's never happened to me before... [which is WHY I never got into bitcoins to begin with]...

~~~

But if you're interested... Here's a theory I put out this morning on another thread...

I don't necessarily think BTC & silver are linked... But it was odd that the latest quadruple bottom in spot silver was in the $26 - $27 range... Today's 'toptick' in BTC was in in the $260 range [or, 10xSLV]... I'm not a 'chartist'... But oftentimes, price 'corrections' follow fibonacci patterns, or patterns of the "golden ratio"...

61.2%

38.8%

50%

& even fibonacci numbers, like 89% [or fibs & "GR's" within fibs & GR's]...

Quick cocktail napkin math would put a 90% correction of BTC right back at the same $26 - $27 range... It;s something that I'll be watching with curiosity...

Wed, 04/10/2013 - 14:00 | 3432361 Cleg1
Cleg1's picture

Whoops there it is

Wed, 04/10/2013 - 14:01 | 3432364 LawsofPhysics
LawsofPhysics's picture

GS is simply closing out a position to buy gold, while telling the muppets to do the opposite.  This was already covered people, pay attention.

Wed, 04/10/2013 - 14:07 | 3432393 SheepDog-One
SheepDog-One's picture

Yea it wouldn't surprise me a bit to find out GS is a main force behind Bitcoins.

Wed, 04/10/2013 - 14:25 | 3432501 francis_sawyer
francis_sawyer's picture

GS... Mossad... NSA... CIA...

~~~

Hell ~ just for the LULZ this morning, I was looking around for anagrams to 'Satoshi Nakamoto'

Wed, 04/10/2013 - 14:00 | 3432366 monopoly
monopoly's picture

I really do not understand this concept of Bitcoins so I would not place a dime on the long or short side. This whole new idea just eludes me so far and thus I have no interest and no stake in the game. 

Wed, 04/10/2013 - 14:48 | 3432714 Poor Grogman
Poor Grogman's picture

The concept behind it is called mathematics.
It's really quite an elegant creation actually.

Wed, 04/10/2013 - 14:04 | 3432379 The Dancer
The Dancer's picture

taketheredpill, you're on the right path

Wed, 04/10/2013 - 14:03 | 3432380 GrinandBearit
GrinandBearit's picture
502 Bad Gateway
Wed, 04/10/2013 - 14:04 | 3432384 cherry picker
cherry picker's picture

I told you so  :)

 

Wed, 04/10/2013 - 14:06 | 3432390 savagegoose
savagegoose's picture

and now clark moody has crashed.

Wed, 04/10/2013 - 14:06 | 3432395 Yen Cross
Yen Cross's picture

      Guess the shitcoiners need to wait another week to buy their new 'shitcoin mines'.

Wed, 04/10/2013 - 14:31 | 3432533 francis_sawyer
francis_sawyer's picture

Oh... What's going to be even MORE hysterical are the ones they ordered several weeks ago [which will never arrive]...

~~~

But no worries... They can 'sue them' in the court system, right?... & the FED/Treasury bailout money is coming to mitigate their losses in 5...4...3...2...

Wed, 04/10/2013 - 14:08 | 3432400 Debugas
Debugas's picture

apparently antivirus companies have updated their virus databases and started healing against unattended bitcoin purchases

Wed, 04/10/2013 - 14:11 | 3432408 GrinandBearit
GrinandBearit's picture

Wow, now $180.

Hard to access a chart because the websites are clogged.  Panic seems to be setting in.

Wed, 04/10/2013 - 14:23 | 3432479 dark pools of soros
dark pools of soros's picture

seems someone sold huge block for $200 earlier and other's followed...  might be new ASIC miners cashing in which is predicted to swoon the price as they ramp up

 

know the game, with the Avalons firing up you will see large supply come online, it's a buying opportunity... laugh all you want but you should watch production output just like you would oil/gold

 

Wed, 04/10/2013 - 14:52 | 3432750 RebelDevil
RebelDevil's picture

Thank you for you contribution.

Wed, 04/10/2013 - 14:15 | 3432410 Smegley Wanxalot
Smegley Wanxalot's picture

Only down 25%?  ONLY?

 

So what's the flight to safety here?  To the USD?  lmao

Wed, 04/10/2013 - 14:18 | 3432454 tekhneek
tekhneek's picture

Might be even scarier, no flight, just loss of value.

Wed, 04/10/2013 - 14:20 | 3432467 LawsofPhysics
LawsofPhysics's picture

Yes, or many taking delivery of physical (or trying to).

Wed, 04/10/2013 - 14:33 | 3432552 tekhneek
tekhneek's picture

We can hope, right?

Wed, 04/10/2013 - 14:34 | 3432595 francis_sawyer
francis_sawyer's picture

So what's the flight to safety here?  To the USD?  lmao

~~~

no shit [lol]... All I've heard for a month are stories of FIAT HATERS & STICKING IT TO THE BANKSTERS... First sign of trouble? Where do they go?

Wed, 04/10/2013 - 14:12 | 3432421 Cleg1
Cleg1's picture

If "each time one buys a bitcoin the value of the bitcoin increases due to the demand"  - and this isn't a Ponzi?

Wed, 04/10/2013 - 14:56 | 3432787 RebelDevil
RebelDevil's picture

A distributed ponzi? There is not one single entity taking in all the profit.
Because it's digital, and value in fiat is purely based on demand, then it's gonna be crazy!

Wed, 04/10/2013 - 14:16 | 3432436 q99x2
q99x2's picture

Next time I won't sell as much.

Wed, 04/10/2013 - 14:16 | 3432439 Smuckers
Smuckers's picture

Going physically broke over a virtual currency....it's some fkn world we live in.

Wed, 04/10/2013 - 14:16 | 3432445 tekhneek
tekhneek's picture

He who sells first, sells best.

Wed, 04/10/2013 - 14:27 | 3432452 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

both mtgox and campbx are having "technical" difficulites with their trading interfaces... won't let me sell... imagine that. luckily i pulled my initial investment last week and turned it into shiny silver

Wed, 04/10/2013 - 14:19 | 3432461 Ol Man
Ol Man's picture

I'll get in if/when it hits $12.

 

8>D

Wed, 04/10/2013 - 15:03 | 3432833 RebelDevil
RebelDevil's picture

it's not going to. buy now if you can, I expect the tech problems to be solved soon (within a week) and confidence restored.

lets take a look at what happened today:
1) Mining pool Mt. Red closes for good.
2)bitcoincharts.com crashes
3) Mtgox and other exchanges get clogged and stop working right.

There you go, of course it droped 25% on that.

Wed, 04/10/2013 - 14:21 | 3432464 Smuckers
Smuckers's picture

Should not be a surprise, BTC users already understand the concept of "0".

 

Wed, 04/10/2013 - 14:22 | 3432470 Praetorian Guard
Praetorian Guard's picture

So, how exactly does BC work? Lets say prices come down further, and I drop 10K on BC (I assume buying 10K worth of BC's?). Now lets say that the value of BC's triples in a short time frame. How does one get their money back out? Will they in fact make triple the money? Thanks.

Wed, 04/10/2013 - 14:27 | 3432515 The Abstraction...
The Abstraction of Justice's picture

It is pretty much zero sum. In order to buy you do a bank transfer. To sell, you receive a transfer. It will be a pity if it goes to zero, it is a nice alternative way of doing remote payments.

Wed, 04/10/2013 - 14:38 | 3432636 Praetorian Guard
Praetorian Guard's picture

Ok, so lets say that BC goes to $5.00 bucks. I transfer 10k for 2000 BC's (correct?). Then it goes up to 10 bucks a BC. Does that mean my initial purchase of 10K worth of BC's is now worth 20k, wherein I would transfer the amount back into a bank account? Thanks.

Wed, 04/10/2013 - 15:05 | 3432820 The Abstraction...
The Abstraction of Justice's picture

if the price has gone up to 10 bucks, it means there are buyers who have registered an interest at the exchange at this level, and will buy your bitcoins at that price, typically done via bank transfer. There is no central authority that will map your coins to USD or anything else, it is all done by free exchange. It is worth getting 0.0001 coins or so, and installing a bitcoin wallet, just so you can how the system works, and is the future of remote payments. It does need some kind of refund system, but I guess that is for bitcoin 2.0.

 

Ppl who say it is going to zero, have not really looked at the positive side. We will need government independent remote transfer schemes. Gold and silver need some kind of electronic representation in the Internet age.

Wed, 04/10/2013 - 14:23 | 3432475 Sudden Debt
Sudden Debt's picture

WHOEHAHAHAHAHAHAHAHAHA!!!!
BUY
BUY
BUY
....

SELL SELL SELL SELL!!!!
FOR THE LOVE OF GOD!!!!',
SELL SELL SELL SELL!!!
WTF!!! why doesn't anybody buys!!!'
AAAARRRRRGGGGGGggghhhhh....aha..

aha... HAHA HAHAHAHAHA WHOEHAHAHAHAHAAHAHA!!!

it was such a great hedge against inflation... untill it doesn't....

Wed, 04/10/2013 - 14:36 | 3432591 Non Passaran
Non Passaran's picture

Sold my last 0.1 BTC @245.5, and before that most of the rest in the range $220-240, thank you very much.

Wed, 04/10/2013 - 15:05 | 3432850 RebelDevil
RebelDevil's picture

good call.

Wed, 04/10/2013 - 14:26 | 3432489 jeebus
jeebus's picture

Having money in bitcoin is like being attached to the back of an out of control missile.

Wed, 04/10/2013 - 14:25 | 3432503 aphlaque_duck
aphlaque_duck's picture

OH THE HUMANITY

Wed, 04/10/2013 - 14:26 | 3432511 Bicycle Repairman
Bicycle Repairman's picture

We all know how great bitcoin's science is (encryption, distributed servers, blah, blah, blahdiddy, blah) and while it is important, it is not the whole story.

The FED can print unlimited money and buy whatever it wants.  It can run any asset to the sky and then drop it into the toilet.  In any time frame it desires.  One month, one week, one day, one nano-sec. And there is nothing, absolutely nothing you can do about it as long as unlimited printed money is available to the FED.

When they want to shake the baby, even your baby, the baby gets shook.

Wed, 04/10/2013 - 14:55 | 3432537 NuYawkFrankie
NuYawkFrankie's picture

Shake Baby, shake..  Shake Baby, shake..

Whole lotta shakin'.... Whole lotta shakin' goin' on...

Wed, 04/10/2013 - 14:56 | 3432776 mick_richfield
mick_richfield's picture

The first thing we do, let's buy all the politicians.

Wed, 04/10/2013 - 15:21 | 3432998 NuYawkFrankie
NuYawkFrankie's picture

Almost had it right: Let's buRy all the politicians.

Wed, 04/10/2013 - 14:37 | 3432512 NuYawkFrankie
NuYawkFrankie's picture

Drat -  just when I'd splurged $19.99 on a BitCoin Miners helmet!!!

(Batteries not incl.)

Wed, 04/10/2013 - 14:29 | 3432514 ebworthen
ebworthen's picture

If only the FED was buying $40 Billion a month, it would be at $15,000+ and never go down.

Wed, 04/10/2013 - 14:28 | 3432518 Smegley Wanxalot
Smegley Wanxalot's picture

$133 as I type.  down 50%.  lmfgdao

Wed, 04/10/2013 - 14:28 | 3432521 DutchR
DutchR's picture

Easy to put dollars in but not easy to take dollars out, Hmmm

 

Wed, 04/10/2013 - 14:31 | 3432530 Manipuflation
Manipuflation's picture

Well, knock me over with a feather. (extra sarc on)

Wed, 04/10/2013 - 14:31 | 3432531 mydogisprettier...
mydogisprettierthanyou's picture

How long till 0?

Wed, 04/10/2013 - 14:33 | 3432550 Sudden Debt
Sudden Debt's picture

On a long enouh timeline...
Bitcoins drop down to 0,25 cents where they belong...

Wed, 04/10/2013 - 14:35 | 3432588 fuu
Wed, 04/10/2013 - 14:41 | 3432646 jaybny
jaybny's picture

relax - prices are still higher then Sunday.... so everyone that bought BTC before Sunday is still up. a crash would be BTC at $9 

Wed, 04/10/2013 - 17:52 | 3433937 dark pools of soros
dark pools of soros's picture

it was another attack..  but the exchanges are getting better at dealing with them..  slowly but surely

 

Wed, 04/10/2013 - 14:45 | 3432686 goldsansstandard
goldsansstandard's picture

On BART going to Berkeley a few months ago I met a German Swiss grad student in Mathmatics specializing in crypto. I asked him about BC . He volunteered that the public would stay away due to volatility.

TBTF in training still speaks truth.

they will try.

But this selloff seems to be normal action.

I I ve been around the block awhile, so my initial BC average is about 33. I took all my initial off the table at 232 last night, and that sell button looked pretty good so I did a bit more.

Still got way more shiney stuff.

Gold, silver, platinum, BC, it's all good.
and a little wad of fiat.

but Ihope Mt. Gox doesn't PFG Global me. They took one thousand fiats and poof.

My mom back in the eighties had 350 k in Old Court S and L.
Guaranteed by State of Maryland .

Bank went poof. Assets were 1 third of deposits.
State took assets and put them in treasuries and seven long years later they had enough in the kitty to pay back the depositors.

that was my wake up call.

Chief atturney of that Sand L was Jerry Cardin. Same lastnname as junior Maryland senator.

Said Jerry Cardin was a cousins cousin, and attended a funeral of a mutual family member soon after the bank went poof, but before his indictment.

He showed up in a Whitecloud Rolls, with the license Jerry One.

He pulled out a 50k Mount Blanc pen and flourished it as he signed the Shivah guest book.

I had to block tackle my mom just before she would have grabbed the pen and given Jerry an involuntary emergency tracheotomy.

Jerry went to jail because the jury could see victims.

Ben went to the Senate, and still carries the TBTF water.

Wed, 04/10/2013 - 15:07 | 3432883 francis_sawyer
francis_sawyer's picture

...and yes the predictions come true... All the success stories from the toptickers [you know ~ the ones who HATE FIAT, but sold at the top for??? drumroll... FIAT]

~~~

<golfclap>

Wed, 04/10/2013 - 14:46 | 3432691 NuYawkFrankie
NuYawkFrankie's picture

Say Buddy - can you spare a Dime?

I said "Dime" - not BitCoin dammit!

Wed, 04/10/2013 - 14:50 | 3432726 NuYawkFrankie
NuYawkFrankie's picture

Screw this BitCoin mining sh!t...

I'm heading back to CougarLife.com - ciao!

Wed, 04/10/2013 - 14:53 | 3432744 Non Passaran
Non Passaran's picture

This is FUN!
BTFD, folks, Bitcoin will be here tomorrow...
I just bought a little @155

Wed, 04/10/2013 - 14:53 | 3432749 Cleg1
Cleg1's picture

The question is will this spread beyond the virtual?

Wed, 04/10/2013 - 15:02 | 3432836 mick_richfield
mick_richfield's picture

See, silver is superior to BC, because we can get price action like this in silver -- even if nobody is actually selling any!

What BC needs is a good futures market, and some regulators who will look out for the interests of the common man.

Wed, 04/10/2013 - 15:13 | 3432925 Cleg1
Cleg1's picture

that would be no fun at all

Wed, 04/10/2013 - 15:04 | 3432837 orangegeek
orangegeek's picture

Bitcoin (sign: BTC) is a decentralized[9] digital currency[10][11] based on an open-source,[12] peer-to-peer internet protocol. - wiki's definition.

 

It's software folks. 

 

How is this a currency?

 

I guess the insiders have sold all the way up and the bag holders are dumping, covering the insider shorts.  The game is as old as Nancy Pelosi.

Wed, 04/10/2013 - 15:06 | 3432858 mick_richfield
mick_richfield's picture

Wow.  53%.   

Actually this is even more exciting than silver.

I'm not a physics guy -- can something that doesn't have any mass nevertheless develop a lot of momentum ?

Wed, 04/10/2013 - 15:27 | 3433035 morning
morning's picture

Muhahahahahahahahahaaaaarrrrrrrrrrrrrrrrrghhhh!!!!! \o/

Wed, 04/10/2013 - 15:53 | 3433231 patriot63
patriot63's picture

reminds me of the quote from the old classic "It's NOT a wonderful life"....... "every time you fart on your old lady a blowjob loses it's wings".

Wed, 04/10/2013 - 16:30 | 3433445 Aurora Ex Machina
Aurora Ex Machina's picture

"...as if millions of voices suddenly cried out in terror... and were suddenly silenced."

 

The entire point of Capital is that there is no escape, there's no magical elves hiding in the grass that let you escape the sharp-pointy-teeth. If it's trending on ZH, there's already blood in the water. "$20 billion" market cap means a single one can eat you just as a starter before munching on some Cypriot Gold.

 

Look up the differences between being poisonous, being venomous and being toxic in biology sometime to know where you're at.

The other option is "tasty".

 

#thelessonstechnolibertariansneedtolearnareonesofscale

Wed, 04/10/2013 - 18:15 | 3434028 Scipionz
Scipionz's picture

Every correction is called crash around here! Seems no one ever looked at a chart in their life before. 

 

Wed, 04/10/2013 - 19:48 | 3434334 Crabshacker
Crabshacker's picture

I wonder how many know nothings got in to this game not wanting to miss out and got taken by the know how this can be played and pulled a wall street on the new found suckers..or am I missing something here..is this the new game of slap "Jack"..

Wed, 04/10/2013 - 20:08 | 3434410 hairball48
hairball48's picture

Gold and silver bitchez. That's all you need to know. Fuck bitcoins

Thu, 04/11/2013 - 22:20 | 3439316 MeelionDollerBogus
MeelionDollerBogus's picture

LOL ^_- : I never ever saw this one coming!

... Hey bit-tarder (I mean trader), ya still got some on yer chin, grab a towel

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