BitCrash Continues: Down 40% And Dumping

Tyler Durden's picture

Time to rename it BitCrash... or will it stage an amazing recovery? Alas, for this particular bubble, there are no NYSE circuit breakers nor is there a Federal Reserve-mandated "plunge protection team." And why should there be? The central banks hate all currency alternatives. Firehats: on, especially since the volume is still relatively lite.

 

Update: -50%

 

More from Tech Chrunch:

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Bitcoin is undergoing a classic correction after quintupling in price over the past 30 days. The currency, which was trading as high as $265 earlier today on Mt. Gox, plummeted and is now trading at around $150.

 

We’ve reached out to one of the biggest exchanges, Mt. Gox, to see what happened. But another San Francisco-based exchange called TradeHill is saying that the crypto-currency is falling because of apparent distributed denial of service attacks on Mt. Gox and Bitstamp. A denial of service attack happens when an attacker overwhelms a target with external requests, so that it can’t honor regular requests from legitimate users.

 

This also happened last week when Mt. Gox when Bitcoin reached $142 and hackers attacked the exchange. At that point, Mt. Gox said it had suffered ”its worst trading lag ever.”

 

The Tokyo-based exchange said last week that hackers are engaging in a strategy to manipulate the price of the currency: “Attackers wait until the price of Bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their Bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit.”

 

It looks like this may be happening again. Aside from that, any kind of 400% increase over 30 days is probably unsustainable from a technical point of view. A correction at this point would be healthy and natural.

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catacl1sm's picture

Look out below!!!

THX 1178's picture

how do you get your mouth so far over to the side like that?

 

malikai's picture

One look through the comments in this thread and I know that everyone into BTC is busy putting their buys in.

..While everyone else pats themselves on the back.

LOL

gold-is-not-dead's picture

it's just continuing to trade in a silly daily spread.
next moves are going to cause a lot of heart health problems when instead of $80 it starts to trade in spread of $800.

malikai's picture

What's happening is someone big wants BTC cheap, so they're DDoSing gox.

The problem is, they're not the only ones who know about this.

gold-is-not-dead's picture

feasible quite... people panic... short term players... miners know how much it costs so there's your support price level... diff to price...

early speculators cashed in 2 years ago, now only miners set the support...

Ahmeexnal's picture

@satoshi latest tweet: SUCKERS!!!!!!

fonestar's picture

...those sporting neck beards always did have a hard time seeing great software.  Maybe with the exception of Richard Stallman.

gold-is-not-dead's picture

High:203.00000 € Low:83.79470 €

 

 

resurger's picture

 

 

 

 

 

 

 

 

 

                                                                         "Terrorists Win"

MagicHandPuppet's picture

If it goes down enough, I might buy a few as a (middle finger) gesture to the powers that be.

Au Member's picture

I'm guessing the NSA did crack the encryption then. Can't have competitive currencies floating around can we.

MagicHandPuppet's picture

If that's the case, their shoot out began right at high-noon!

Comay Mierda's picture

GS must have issued a buy recommendation

Manthong's picture

It wouldn't shock me to discover that it was a hit.

It would probably only cost the Fed a quarter billion bogus Bernanke bucks or so to run that kind of pump ‘n dump confidence attack.

Lore's picture

"“Attackers wait until the price of Bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their Bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit.”

Isn't that precisely how JPM is accused of painting the metals charts?  Only difference here is there's no pretext of physical behind each unit (contract).

A L I E N's picture

I just think it’s fascinating because its a totally free market. No circuit breakers, no PPT, no JPM. The only freely traded market in the world, raw and uncut.

Lore's picture

Yeah, hacking isn't manipulation.

OutLookingIn's picture

Can you say -

PONZIE?

Knew you could!

labestiol's picture

Just so you know, the bitcoin network is still working as usual. This (deserved) correction is just there to provide you a good entry point. Enjoy ! Or as the usual saying goes here :

BTFD !

hairball48's picture

Exactly! So what is to stop the Fed, or any of the big banksters from fucking with the bitcoin "market" in the future. I can't see any great cost to the Fed or JPM, et al if they want to just hassle bitcoin exchanges/mines, or whatever you call them forever.

El Oregonian's picture

Is that like almost pregnant?

draug's picture

Meanwhile, bitcoincharts is serving 502 Bad Gateway.

eclectic syncretist's picture

Let's face it. If you bought bitcoins it was because you wanted action.  Well, you've got it.

defencev's picture

Not true: Satoshi always worked for NSA(and still is).

jcaz's picture

Send me $10, I'll send you back three BitCoins-  four, if I squeeze my eyes reallyyyyyyyy tight.....

EscapingProgress's picture

I have absolutely no idea what Bitcoin should be valued at, but it is worth more than nothing and it always will be. So many of you hate on central bank currencies, and then you also hate on Bitcoin. I don't get it. Bitcoin is beautiful. Gold and Silver derive value the same way Bitcoin and dollars do. PMs and dollars are worth whatever humanity intersubjectively believes they are worth. There is really no such thing as "intrinsic" value. Please, get over yourselves PM bugs. There are other options out there. Diversify. Am I saying buy Bitcoin now? No. I don't even own any, but you should at least understand it. To believe that technology cannot provide alternative currencies is folly.

I have two questions for the PM bugs: How many businesses accept gold and/or silver as payment? Now, how many accept Bitcoin?

RockyRacoon's picture

You assume that one who owns PMs wants to "buy" something with their holdings.  I don't and don't know anyone who does.   When pushed I can always go to the local farmers market and use my junk silver in trade for nearly any of the vendors there.   They have little cards or print-outs with conversion to fiat values.   Does that answer your weak-minded questions?

EscapingProgress's picture

What are PMs worth if you cannot use it as currency? Are you going to use your gold to manufacture computer chips? If private ownership of PMs is outlawed again you won't be able to sell PMs online or to a dealer, and if you also cannot use it as a currency in some under-the-table transactions then they are just heavy, worthless bricks. But, of course, this realization won't stop me from buying some of these heavy bricks.

From most of the comments I read on ZH I don't believe that many PM holders fully understand the risks involved with investing in PMs.

akak's picture

 

From most of the comments I read on ZH I don't believe that many PM holders fully understand the risks involved with investing in PMs.

Actually, I see a remarkably rational and balanced assessment of the risks of holding PMs from most members here on ZH.

What I fail to see is ANY acknowledge among the general public of the very real, and growing, risks of keeping one's savings within the TPTF banks, and more generally, within any portion of the failing and corrupt financial establishment apparatus.  Most Cypriots now recognize those risks, if belatedly.

francis_sawyer's picture

@RockyR

~~~

"You assume that one who owns PMs wants to "buy" something with their holdings.  I don't and don't know anyone who does."

[+1] Only thing I'd ever trade them for would be a life or death situation... The kind which would only likely manifest in a societal collapse...

 

hmmmstrange's picture

Did PM's go up over %1000 year to date?

A Nanny Moose's picture

My local farmer's market now accepts EBT

Ag Tex's picture

Not a fan of BTC but own a few for safe measure.  It screams beta for something much larger.  This thing could easily hit five to six digits before jettisoning.  In addition, it is not going to be treated the same as PMs (ETFs, naked shorts, re-re-re-re-rehypothication, leases, fractional reserve, etc.) or any other asset class, because the world knows exactly how many Bitcoins there are.  It's going to take a lot more than this little episode in order to tame this wild filly.  Today's antics look like a staged Don King fight. 

francis_sawyer's picture

enjoy your playride... I'll be over here doing some hoeing in the garden... Let me know how it turns out...

Ag Tex's picture

Agreed.  The ultimate stake is in physical silver and gold for true wealth and money.

jimmytorpedo's picture

A funny thing happened while I was hoeing in the garden today.

My two turkeys came over and asked for assistance.

I held Clyde on top of Bonnie and helped get the job done.

I feel like the ultimate wingman!

defencev's picture

There is really no such thing as "intrinsic" value. Please, get over yourselves PM bugs. There are other options out there. Diversify. 

Sure. Diversify:bitcoins, litecoins, freicoins.....up to infinity. All do the same, all have no intrinsic value, ALL ARE IN LIMITED SUPPLY...

And why should they cost anything? (infinity* Limited supply=infinity).

Skateboarder's picture

Bitcoin = Con it bi (be).

Skateboarder's picture

Yeah, have fun with your digital money guys. As I've said before, I admire you BTCers, but I think bitcoin is stupid. You can't eat gold, but you sure as hell can hold it in your hand. Food/water/shelter/raw materials/defense are the only real wealths.

NoDebt's picture

Oh my God, I'M RUINED!!!  No, wait, I only had $500 in it.

Oh my God, I've lost $500!  I need TARP money!  I need a government bailout!  No, wait, I'm still up 100% since LAST MONTH.

Wheeeee!!!  This is better than owning your own roller coaster!

Oh, yeah, this is stable.  This is mature.  This is something you can REALLY BELIEVE IN!  You might want to watch me get knocked around like a ping pong ball in a hurricane rather than trying this yourself for the time being.

francis_sawyer's picture

Shit... Ida rather had 16 or 17 silver rounds [or some ammo]... But you can do what you want with your beer money...

SafelyGraze's picture

every day at 2pm the bitcoin bullion banks have a conference call to fix the price and raise a little yellow flag

fonestar's picture

The Bitcoin experience will be punctuated by 25%, 50% price corrections... who the fuck cares?  I am not selling any BTC today and if it goes back down to $50 - $100 I will buy more.

Look at all the fake libertarians cheer at Bitcoin's supposed "demise" ROFL!!  We will be rallying right back up in a few days time.