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BitCrash Continues: Down 40% And Dumping
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:
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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Boing! 160, so fuck you zerohedge retards, with your tullips and your bitchez and your shitecoins and your know all bollox, that amounts to nothing more than 'buy silver'
Some of us even have platinum, and some of us live frugally, so we need not your advice. We gamble, and we understand that we gamble, and we accepted the losses as we chose to gamble.
Remember, the market often gives you a second chance, but it rarely gives you a third...
The point is that I consider the risks when I throw the dice, and I don't need anyone telling me I was a fool for entering the game.
@Vooter. A sage comment indeed. +1
hmmmm
wonder if this guy is getting out
http://blockchain.info/address/1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx
70,000 btc even @ 150 is $10.5 m...if he got them at 10 bucks...well
transaction fees are 4-6% in the UK?
http://blockchain.info/wallet/deposit-methods
Hi: $266 Low: $105 Rebound: $179 ~ I'd like to open a volatility exchange featuring this product.
When it goes to $267 do we get some kind of apology? Bitcoin envy is just the same level as penis envy. Same feminnyizstNazist rubbish that Aristotle wrote about in his 'Treatise of Greek Wankers'
Apology from who? For what?
From all the know-it-alls who say its better never to go in, than to have made a profit with their twerpish little insults, just because some ppl made money when they did not.
At least you're honest about your motivation: pure speculation. If you're #winning, wouldn't worry too much about the prattle. While I don't employ bitcoin and have reservations about the protocol and architecture, I do understand that a "street finds its own uses for things". #burningchrome
I'm thinking of setting up my own virtual currency. It's going to be called "bitontheside" and its underlying value will be based on the spread (pun intended) between wives catching husbands and husbands catching wives.
My virtual currency will be called "Bite Me" and will only be offered to TBTFs.
Okay. I'm in.
It wasn't a denial of service attack. It was a bunch of people dumping bitcoins.
Actually from what I have looked at so far there did appear to be a short DDoS attack during which time some BTC were sold and the whole thing cascading from there. By the ZH reported it, it was already trading again but people had been spooked which appears to have been the intention. Kind of like a flash crash in a way.
Many of us did say it wouldn't be long before they come for Bitcoin.
It was too loose an end to leave around, especially with the narrative that is being crafted.
Important Gold News
A Chilean Court has suspended Barrick's mammoth Pascua-Lama gold project. And Barrick has sold forward millions of ounces from this project without ever mining but a single ounce. Our banker friends are getting cornered. Hence today's garbage from Goldman Sachs and desperate take down in the paper market.
SGS report did a segment on this story a few weeks ago...the shenanigans of Barrick are very interesting.
This surely must hurt:
http://blockchain.info/address/1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx
$127 avg price...
Well, that didn't last long...already back to $190. I didn't even have time to go out and buy some.
Time is relative. Closing time double so.
Pro tip: Mr Keiser was (is?) sponsored by Hugo BossTM . And not your average Web Presence, we're talking modelling the damn clothes.
Do your own due diligence on the reasons for that particular arrangement.
If anyone misses the Trololololololololololo guy .... I made a DVD of it .... over and over .... I can make duplicates on my Zipspin .... will trade for anything of value .... I'm looking for old, readable copies of Scrooge McDuck comic books .... not necessarily rare ones .... I want to relive my childhood .... in North Platte, Nebraska .... at the Piggly Wiggly market .... comic book carousel .... eating a $ .05 butter brickle ice cream cone .... those were the days .... my friends ! No Bitcoins, please !
This crash was seemingly very well foresawn and predicted over the last 48 hours. I 've seen at least 3 predictions of a crash and one warning of an "attack". The most Libertarian sourse predicted the attack, but many European sourses were forecasting such a crash weeks ago. Damest thing ain't it?
Can't buy 10's of thousands of coins without a panic
back at 188 now? oops 163
im going down the pub, for happy hour!
http://money.cnn.com/2013/04/08/investing/bitcoin-bar-new-york-city/
update...ack
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Almost at $200 again currently.
http://bitcoin-analytics.com/
Interesting you can see right where the major DDoS attack was in the order volume. Bottom just dropped out for a bit.
okay..now i'm showing 179
http://bitcoinprices.com/realtime.aspx
volume 154,712.83 last at 176 19:20:29
It is bouncing like a mexican jumping bean on meth right now and it is only Tuesday! Hookers and blow got nothing on this when in comes crazed unpredictability.
since nanex won't put a report out I can give some details
mt gox was getting hammered first like usual, but with all those low price quotes, hardly anyone could make many trades.. too much lag
bitstamp was showing very low prices and then huge swings.. from $78 to $150 to $228 back to $80 etc.. but that site was popping in and out as well
blockchain wallet wasn't taking any cash deposits for whatever reason, seems they didn't want to trust any price
bit-e was pretty stable but I didn't have much in that exchange to do anything, but they were the ones that stayed up through most of it, and you could see mt gox quotes from there easier than trying to go to mt gox
many people tried to buy at sub $100 but doubt anything was moving.. for example I was able to buy at $141 which was as low as it really was while stable
WHAT THIS WAS:
A lot of DDoS attacks with a few big dumps to set the price falling... many people could not buy at the low prices because of weak systems in place.. the exchange infrastructure is still fairly new and weak but as the price shows now, back to $200, bitcoins is not weak
The exchanges are always going to be the weak point especially if a large volume of traffic is moving through only one. There has to be a way of sufficiently decentralizing the exchanges like coding the mechanisms into the client side of the software to trade directly through the network. Really is an issue of dealing with varying latency issues on the network between nodes. It should minimize DDoS disruptions and level out the swings if implemented.
the other soft point are the cash services like bitinstant.. you really don't know what price you are going to get when sending money in that way since you create the order, get a soft price quote, and then who knows when you go drop off the cash at the CVS, and then later on you find out what you got them for.
I suggest anyone put money into an exchange first and then make your deals in as close to real time as you can.
another inbetween option is coinbase.. you link a bank account to them and then they give you a spread. Right now since it is chaotic the spread is $147 to buy, and $120 to sell.. they even give fair warning that its choppy waters and spreads will be wide for today (now, $164 - $132 spread)
DCH. I respect your opinion but how do you consider the volume to be large? I mean for all of the tech BTC'ers know about, gox looked like it was running on a shared server. Pandora's box has been opened that's for sure. I'm not sure I can trust the numbers I'm seeing either because on low volume huge price swings are occurring. I think the gas line is clogged up. Time for some Sea-Foam.
Look guys, I'm on your side with BTC being a cool idea and in fact I was in it for a while but a parabola is a parabola whether it is Gold, Silver, APPL or BTC and they all end badly. You guys can all blame it on DDoS but I sat and watched BTC trade for over an hour during the crash and trades were going both ways. A DDoS might have triggered the event but BTC was set up to crash technically speaking and it's probably better for BTC in the long run that this happened.
The real issue some ZHer's were having with the Bitbots here is that there was a lot of bravado that BTC could not be fucked with. Some of us have doing this stuff for a while and we know better. Do you know how many parabolas I have seen in silver over the years? I use them to tell me when to sell and they work well as indicators. If you have been in BTC for a while, you are fine financially most likely. What we were trying to say is that nobody should be buying at $230 or where ever it was last night.
I know that it is easy for your emotions to take over when something you strongly believe in finally starts to take off. When that happens, you have to be careful. Who knows, maybe BTC is worth $230 but I doubt it. I was out at $80. Now we will just have to see if an equilibrium can be established and price discovered. If nothing else, it has been a very interesting day so far my friends.
I wish you BTCers the best of luck but I am sticking with Operation Shitload of Silver Dimes. I should receive shipment #3 tomorrow. While everyone was jumping up and down and doing handsprings over BTC, I was quietly over in the silver dimes patch shoving rolls of dimes in my pockets.
Unless the stats I saw are not correct Mt Gox currently moves about 80% of the daily trade data through their exchange for the whole network. That is large when you consider the total volume for the network itself.
DCH. I see what you mean and I believe you are correct. But didn't all of the exchanges get hit simultaneously including the Litecoins etc? If that is true.... You tell me Brother as you know more than I do about all of the exchanges.
Back to 155 again according to MT Gox. I see volume is picking up some now.
Planned destabilization by competing governmental interests, perhaps? Especially after it was announced to be a target.
At least bitcoin now has a rap for being a volatile currency medium.
what really becomes the problem is all the merchants throw up their hands on what they can sell things for via bitcoins.. that might be the main objective as far as destabilizing
but as far as keeping your dough outside of fiat, that is the longer game which that can't really win
If you can price in 50% swings into your pricing and discount accordingly then yeah it could work if you allow for payment in both. The merchant services seem to be there and cheaper than using credit card processors for fees. You'd have to target the 20 something crowd to make it work initially. It is tricky deal trying to keep up with the market but I think it is doable.
Ah, the algos are now in control of BitCoin land. By now, the dark force has probably tight control of this "free currency". Sheered once. Repump, wash and rinse again ad absurdum ?
Ask yourself this question: What should represent the very valuable resource as your labor on this planet? Gold has stood the test of time. What you got to sat about that?
bitcoin is like little zit's on the TBTF arse .. the know they are there and will pop them when they have a big enough head..
Looks like a dead cat bounce about to unfold
everyone getting this on http://bitcoinprices.com/realtime.aspx?
(PS forget it..its now 175 offered..worse than netflix on a hot vegas afternoon)
Live Ticker High Low Volume Buy Sell Last 266.00000 105.00000 156075.59 182.00000 185.00000185.00000
HATE TO SAY THIS.. BUT, 'TOLD YOU...
(no actually just kidding... I love being right lol)
Looks like the whole thing is getting ready to go full retard again. The order volume is starting to split off big time between the bid and ask prices just like it did right before the volume flatlined.
Looks like a healthy correction to me...
An English nursery rhyme, a song that mocks futile action:
'The Grand Ol' Duke of York... he marched them up the hill...and then marched them down again.'
Don't fight the Fed on its own turf. That is today's lesson.
I have no interest in bitcoins, one way or the other, but today's action was predictable.
Buy gold, silver, land...the world's only true lasting stores of wealth.
I like what BitCoin represents but I have to agree, that was no normal DDoS attack. That was no normal group of hackers either. There was a military like precision to it. I think that might have mentioned in the nursery rhyme....
Don't fight the Fed on its own turf. That is today's lesson.
Well, that broke quite quickly! Looks like I will not see the epic crash live...
WAIT... NICE DEAD CAT BOUNCE FINISH!!!
down to $130 again ...
soon to be worth 1/64th of a tulip
This was predictable because of the heavy promotion of bit-con last week by posters on ZH.
hackers are the new central bank,
But wait! I has skin in the game! I was looking for the million dollar a bitcoin mine!
Those that started out at $5 a bitcoin may soon find themselves back to $5 sooner than later... BTW, bob_stl said it best "It wasn't a denial of service attack. It was a bunch of people dumping bitcoins."
Someone also mentioned the market will often give you a second chance but not a third. I would get the fuck out of Dodge on this one while the weather is still fairly warm.
Now, That's What I Call Vo-la-ti-lit-yyyyyyyyyyyyyyy.
I wonder what spooked folks?
LOL! Me too? This is entertainment. The thing is that the BTCers keep coming back for more only to get scalped again. They aren't giving up and as a veteran of two Ron Paul campaigns, I truly respect their determination. It's like money does not matter to them. But eventually it will. I am starting to suspect that BitCoin is tax on the youth.
Bitcoins are quite literally play money, the fantasy of technocrazed nerds who believe they are revolutionaries by sitting behind a computer screen.
(Meanwhile the more powerful and connected nerds at the banks use those same computer screens to make more and more fiat money which they actually can use).
Bitcoins are nothing. They are not even backed by governments as fiat moneys are. Unlike precious metals they have no natural stability.
Moreover, any smart programmer can come along each year and invent a whole new digital currency and call it whatever he wants, to bring in the suckers.
Oh, NO!!! There goes my virtual retirement......
I think BTCers had best start looking at the gox candle charts and look for a pattern emerging because a pattern is emerging and it is suspicious. If I See It Again, I Am Going To Say Something.
Bitcoin is scary, but why would a VC in new york invest 500,000 real dollars into a startup exchange when its competition if offering 2000% interest on deposits?
This is crazy and the laws of economics say crazy exponential growth is not possible.