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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pragmatic hobo's picture

I guess someone tried to cash in the paper gain ...

One eyed man's picture

Maybe they are all cashing out their BTC in order to buy into solid investments like tulip bulbs. You know, something you can eat.

waterwitch's picture

Or used it to buy puts on S&P and DOW. No bubbles there to speak of.


X86BSD's picture

It's kind of funny since I don't own any bitcoin. But don't you think we can all agree everything is being manipulated? Bitcoin, gold, silver, etc? If so and all things being equally manipulated, I still prefer to own physical hard assets in my possession. Such as gold and silver bars and/or coins. And I think as thousands of years of history have shown physical forms of gold and silver will come out just fine and at the top of the dung heap the worse things get. I'm not bashing bitcoin holders. I love the idea, but at the end of the day there are just still to many unknowns about it. I just want to be Scrooge and stockpile my gold and silver physical. The banker pigs are doing everything they can in a global concerted effort to shake the faith of physical PM by throwing everything plus the kitchen sink into driving PM prices down. But they can't do it forever. They are hoping to do it long enough to shake the people's faith in the metals. If they can keep driving it down people will give up. Don't! This is one time I agree to keep BTFD! Buy buy buy! The CB's are buying gold in record amounts for a reason, they know what's coming and they know only PM will keep them in power when it all collapses. Follow what they buy not what they say and buy buy buy your PM! Don't let the falling prices dishearten you. It's manipulated pricing and won't last forever just keep thinking of it as more buying opportunities. My .02 cents worth.

BigJim's picture

 ...The CB's are buying gold in record amounts for a reason, 

And how do we know that 'reason' isn't so they will have even MORE to lease to the bullion banks and GLD at 0.05%, who will turn around and sell it at 100:1 paper:phyz? Thus depressing the price?

The farce continues until the paper market breaks. And as the CBs are (ultimately) the power behind the paper market, everytime you hear of them buying more gold you should be worried. Unless you are in the 0.1%, the CBs are your enemy - all of them exist to prop up their respective governments' fiat, at their people's expense.

Lore's picture

When you can hand a BitCoin to the cashier at Wal-Mart, then I'll take another look.

Richard Head's picture

Does this mean the $796,000 price target will be revised?

Ness.'s picture

Bitcoin needs a Kevin Henry...  real bad.

debtor of last resort's picture

Poor Sprott. All that pslv money in btc at $230,-

Seasonally adjustments in Bitcoin only takes a second bitchez...

Cone of Uncertainty's picture

So where are all you Clit Tards now?

But, but Cone, you should see my average cost basis, plus people are mining shit man.

Only a fucking fool would put capital to work in this fucking turd.

You all deserve the face ripping and then some, fucking sheep.

Cone of Uncertainty's picture

To the sheep down voting me, look over here, I have your face.

Do you want that stiched or expoxied back to you skull?

I take payment in Clit Coins.

Hulk's picture

This time its different !!!


jcaz's picture


Edward Fiatski's picture

My sentiments exactly that, but let's try to stay civil - some schmucks on this board also bought into the Unicorn Tale.


Manipuflation's picture

BTC is now RMC.  Russian Meteor Coin.

Smiley's picture

NEWSFLASH:  Electrons are not Money.

somecallmetimmah's picture

But paper is still "gold", baby!

DutchR's picture

Electrons are not Money People?


Use your imagination....


Shells are ... Money?

What is money?



IamtheREALmario's picture

I wonder if it would work with 10 to 20 different BITCOIN type of operations. Some would be pure fiat, like the current BITCOIN, others would be backed by gold, or silver or commodities (for the farmers) and producers and they could be interchangeable.

It would/could eliminate borders, but also take away the banks monopoly position in money creation and without laws preventing people from trading in other currencies it would let their fiat trade at a market level ... as long as they do not complete ant total control over the exchanges (as they have now).

But then banks would just be paper pushers and not masters of the universe.

fasTTcar's picture

Digital barter is what you are speaking of.

That is what fiat currency was created for in a manual way.

It works until it is hijacked and unbacked.

virgilcaine's picture

It's catching up to

Save_America1st's picture

I want to hear what Boris Alotovkrap thinks about this.  I heard the Russians were pouring all they had into BTC.  Where you at Boris???

PUD's picture

Do you know what all this shit really means? It is just a reflection on the global mass insanity that has gripped everyone...bitcoiners, gold bugs, stock tards...everyone is nothing but a gutter bound reckless gambler...that includes all of you, the fed, every government, all the central banks, every swinging dick day trading the fuck out of everything that isn't nailed down.

The end is near my friends...humanity has lost its collective mind if it ever had one

Cone of Uncertainty's picture

All this proves is that we need a new, updated edition of Extraordinary Delusions and the Madness of Crowds.

Spastica Rex's picture

I agree with everything you said except maybe the part about "the end is near." I guess it depends somewhat on one's definition of both "end" and "near."

ParkAveFlasher's picture

Hey PUD, damn you're broke!

Cheer up camper, it'll start climbing again when you sell at a loss.

ebear's picture

I guess it depends somewhat on one's definition of both "end" and "near."


My end is so near I can reach around and touch it.

Poor Grogman's picture

In the latter stages of the decline of Rome there were a great many speculators, that's what happens when .gov messes with the money supply.

The speculation will only get worse as the ponzi comes apart.

Cathartes Aura's picture


everyone is nothing but a gutter bound reckless gambler...that includes all of you, the fed, every government, all the central banks, every swinging dick day trading the fuck out of everything that isn't nailed down.

The end is near my friends...humanity has lost its collective mind if it ever had one

lol, well the gamblers in the human gene pool, mebbe, but the truth is, not everyone is out there "trading the fuck out of everything" - it just seems that way in a narrowed perspective.

most of humanity doesn't even care about bitcoins, etc. - but many are paying attention to more tangible safeguards for the "future" should it arrive.

somecallmetimmah's picture

C'mon, man, think of it as a preview of our future.  First we get to see how the Bitbots respond to instantaneous poverty, then we get to see how the whole world responds to instantaneous poverty.


blindman's picture

nothing says "I love you" like volatility.
how many 1 oz. gold or silver coins , or bars,
would one trade for a bit coin?

cherry picker's picture

Mining electrons is worth money?

Virtual currency?


Ha Ha Ha Ha

dojufitz's picture

i became a member in late 2011 - deposited $30.....i never bought do i get my $30 back! lol!

Manipuflation's picture

If you time it just right, say by this evening, you can probably get 300000 BTC with your $30.

ILoveDebt's picture

it all seems very coordinated and malicious. Many major bitcoin sites all went down at the same time the selloff started. This is better than the internet swings in the late 90s. Good thing I got my popcorn.

its too bad, it really is an interesting and viable technology. Someone is really screwing with it right now though.

The Abstraction of Justice's picture

Yes and litecoin fell by EXACTLY the same proportion. Now if litecoin had remained steady, since it was not as bubbled, then people could have easily hedged into litecoin. Instead we saw the litecoin to bitcoin ratio increase in bitcoins favour. That may tell of an attack not just on bitcoin, but virtual currencies in general. On the plus side, there will be more people looking to buy physical silver to hedge against fiat collapse tomorrow morning. That is the silver lining, and perhaps their attack may just prove counterproductive in the long run.

francis_sawyer's picture

So now we're talking about susceptibility to "attacks"


Which was something that all of you all but ASSURED everyone bitcoin was impervious to for the past month...

This is better than comedy...

Abstraction ~ I gotta say this... At least I give you credit for coming on to this thread AT ALL [notwithstanding your 'moonwalking']... Fucking hack like CH1 & 'Bubblegum what's his fucking nuts' are conspiculously absent...

ILoveDebt's picture

The currency itself wasn't attacked.  it's fairly robust.  The problem is 80% of the currency exchange goes through one exchange.  It has been under constant DDoS attacks for the past two weeks and prolexic isn't handling the defense worth a shit. 

There are plenty of legitimate problems with bitcoin, I'm not sure why people like you want to poke even more holes in it that don't exist.  This is purely a problem with a fledgling currency failing to cope with too much attention at one time.  The exchange isn't sophisticated enough to handle the attacks or the traffic, but the market isn't big enough to warrant a more professional approach... yet. 

I feel Bitcoin will run it's course and will serve its purpose of showing what a decentralized currency could do.  It will probably be the Myspace of digital currency, though, as the next time this is done, all the holes that have been probed by the world will be for the most part plugged next time. 

I feel this is like the democrat - republican fights where everyone wants what's best for America, but are set against each other by the people looting them while they bicker.  The only person that wins when Bitcoin fails is the fiat currencies.  It was never an attack on your gold and people like you that constantly cheer the downfall of Bitcoin seemingly want to see fools lose their money purely for being fools.  What good does that do?

The Abstraction of Justice's picture

I never said that bicoin was impervious. I believe that I have never moonwalked, nor am I made of straw.

game theory's picture

Bitcoin will be at fair value when it reaches zero.

dick cheneys ghost's picture

Here is a picture of my bitcoins...............
















Hope this helps............

VonSalza's picture

the great stillness, it's beatiful, Zen

game theory's picture

There isn't much to explain: it is a fiat currency backed by no nation and no assets. It is worse than holding arcade tokens. Honestly, the existence of bitcoin makes the USD look good (which I thought impossible).  Also, there is nothing preventing an infinite number of bitcoin competitors; as the number gets large enough, the value of the "original" bitcoin relative to the USD will appraoch zero.  


hungarianboy's picture


q99x2's picture

The gift that keeps on giving.