Bitcoin Trades Over $1000 On BTC China Exchange And Crashes 30% ... Then Rebounds

Tyler Durden's picture

Update: following the 30% drop to under $600 in seconds, BTC promptly rebounded to $800 in a few more seconds, as the entire BTC market is now just an algo arena.


* * *

Putting to rest fears that today's Senatorial hearing on digital currencies would crater Bitcoin (if in the immediate term), moments ago the digital currency priced in USD on the Mt Gox exchange, rose to yet another unpredecented price, hitting $850 moments ago, or about 50% higher than where it was this morning.

But you ain't seen nothing yet.

Because at the same time, the Renminbi-denominated price of Bitcoin on BTC China, has the digital currency at 6780CNY. At a USDCNY exchange rate of 6.09, this means a price over $1100 per Bitcoin.

And as the two day chart shows, somehow while Bitcoin rose 50% in 2 days, it has doubled on the Chinese exchange.

Naturally, at this point we would suggest picking up the 20%+ free arb, however it is unclear how one can short the CNY priced leg of the transaction, or if for that matter, there is even an actual, liquid market in the currency.

And as if to prove BTC just head us, as the final chart shows, taken literally moments before we were going to post this article, BitCoin touched $900 on Mt Gox... and promptly tanked to just under $600, entering a bear market in the span of seconds on what appears to be about 10,000 trades.

And a better chart of the tumble which sent BTC lower by 33% from $900 to $600 in seconds:

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The Gooch's picture

Paging Fonestar


flacon's picture

Government is DUTCH TULIP-ing Bitcoin. That's one way to destroy it - make it go exponential and then CRASH!

Ignatius's picture

Simpler.  The Chinese love to gamble, I'm told.

The Gooch's picture


All those FoxConners are hittin' the solar-powered-bitcoin-dispenser and buying up the land.

They're gonna build vast urban foarward centers.

Scarlett's picture

DoChenRollingBearing  has a point, at 2.x btc per ounce, god is going to fly off the shelves.  


ZERO gold will be found for sale.  Very soon.

fonestar's picture

Satoshi + fonestar declare victory and move to Galt's Gulch:

CPL's picture

BtCHulk smash shorts! Just remember kids...their's no margin, you jump in and you bleed your wallet out all over the street.  Have fun!  TTFN


fonestar's picture

If you like paper and you like silver, then buy Bitcoin.  Then you can buy more paper and silver.

jomama's picture

what exactly are you trying to prove?  and to whom?

nope-1004's picture

That age old investment strategy to ensure bankruptcy:  Buy when in frenzy mode up!  Enter dot com, housing, silver, AAPL, now Bitcoin.  Inexperienced ppl always buy when RSI goes up and price parabolic, for some reason.  I reckon it has something to do with talking your book, otherwise who would be stupid enough to say that they're buying AAPL or silver now.

BTW, I bought more silver today.



fonestar's picture

Except that we are watching nationalist shit-paper absolutely crater against the Bitcoin.

gold-is-not-dead's picture



Somewhere in March I said overhere, we're going to see spreads in the magnitude of $400 next year, I was wrong obviously, it came today.

CPL's picture

yup...eventually the price will continue to arise to adoption, it'll hit a threashold.  They will have to print more to keep up with the rising wall of the other 70% of the worlds capital kicking the teeth of a bad idea of fiat all over the road.

And everyone has a parachute if they so choose to use it.  Early adoption is suggested.

boogerbently's picture

Flash dash then crash of trash.

No pity.

fonestar's picture

Does anyone really believe Bitcoin, the mighty Bitcoin, the deflationary tiger is going to have any trouble whatsoever overtaking 1oz gold?  It is going to cut through it like butter.  Like it wasn't even there.  Nothing will stop Bitcoin now that it is released and stalking the real world.

Do you not see yet?  $10 $100 $1,000 $10,000 $100,000 $1,000,000?  These are only zeros appended to a theoretical construct you were brainwashed during childhood to accept as "dollars".  Bitcoin will encounter no resistance cutting through your delusions as it is the superior system.  I tried to warn you and you chose to ignore my warnings.  Bitcoin is the deflationary blackhole.

FEDbuster's picture

I will trade you a $100,000,000,000,000 Zimbabwe bank note for one!  To infinity and beyond!!!

fonestar's picture

We are talking current monetary units of exchange...

boogerbently's picture


on the gold standard?

backed by the full faith and credit of.....

James_Cole's picture

I wouldn't bet against gold.

Gold, the money of kings. Silver, the money of the people. BTC the money of the future (or something like it). 

fonestar's picture

Betting against gold and betting against gold (in dollar terms) are two entirely different things....

James_Cole's picture

Betting against gold and betting against gold (in dollar terms) are two entirely different things....

Not totally sure what you mean, I would just lean toward gold being a pretty solid investment. BTC is good times, but I wouldn't recommend it to my grandma (outside of hindsight obviously). 

To my mind, and I think you're in agreement, the moves in BTC are generally emblematic of serious worldwide currency problems and this panic is just waiting to spread. The canary in the coal mine I think Tyler has pointed out before. 

fonestar's picture






What I mean is this:





In the end I think we can remove the "dollar" from the equation.

putaipan's picture

dear infinity- you forgot to say " beeeeaaatchezzz ! "

bunzbunzbunz's picture

Seriously if want bitcoin to work out, help spread it around to encourage use : 12Yk63ehLkvodMCS5J687w7EKUdQs1AjXM


Conversely, if you think bitcoin is worthless, please send any spares to promote charity: 12Yk63ehLkvodMCS5J687w7EKUdQs1AjXM

disabledvet's picture

"bitch coin" is not seen as a competitive threat apparently.

fonestar's picture

Oh we will see about that.  Bitcoin is going to tear your whole world apart.

putaipan's picture

@scarlett . no sweetie. when the gold is gone ..... then God will be flying off the shelf. very popular,high demand. big run on God. much avilable to everyone infintely divisible and always One. no conterfieghts. none needed.

NoDebt's picture

I was watching it real-time.  It's like Newt said about the creatures in "Aliens".... "They come mostly at night.  Mostly."  

I've been watching every night the last week as Japan starts to wake up up.

Sold 50% of my position at $865 (on the upswing to the peak).  If I had been any quicker, I would have only caught $800.  Yes, It went up that fast.

Note:  I am NOT a trader, by my nature, but I gotta tell you, I understand the rush now.  Holy crap, it blew my hair back (what I have left of it).

More informative than the parabolic upswing was watching it take out the bids on the way down.  WHOLE NUMBER after WHOLE NUMBER, right on the 50s in most cases.  A "currency" that trades at 5 places past the decimal posting 850.00000, 805.00000, 800.00000, 750.00000, 710.00000.  The bid stack was laid bare, exactly where they were, and then you got to see them get taken out one after another.  In a matter of minutes, the whole order stack was turned to jello, often 50 bucks at a clip.

DAMN, what a rush!  Never been involved in a parabolic before.  Certainly nothing in the timeframe of minutes or seconds.  And definitely never on the "winning" side before.

Now.... here's hoping I can actually get those profits back from Mt. Gox, if they're still in business tomorrow morning.

This currency is going to have REAL algos crawling all over it within a week.  What I watched tonight on the down-swing was amateur hour.


Matt's picture

This is nothing, there are trades on GoXBTC (a chinese exchange) where someone paid 22,213 yaun for bitcoins, thats about $3600! I think they are using that butterball or buttercoin or whatever, HFT Algo for cryptocurrencies or something, and don't have it set correctly, or they just have really fat fingers. I'm trying to find the volume traded at that price, but the site keeps flashing back and forth between English and Chinese.

putaipan's picture

hey gang- don't really want to fight. i'm a fucker , not a fighter. 

but lots of build up of 4day full moon stray thoughts for ya all-

satoshi's satoshis cashed out in dollars, bought some yaun and bought back in.

there is no dragon society! they're just making it reign with imaginary numbers too.







Bunga Bunga's picture

Let 1.2 billion Chinese gamble for 12 million Bitcoins.

bunzbunzbunz's picture

It is forming the most beautiful dampened sin wave I've seen in a financial. I have no shame: get some free bitcoins at

Stackers's picture

Just wait till it has 4 zeros on the end and is still making 30% swings in 3 seconds, lol.

putaipan's picture

tanked to 600? giggles.

calling nanex ....

guarenteed sumpin' really important is happenning somewhere else- distraction extrordinaire.

NoDebt's picture

FIVE zeroes on the end, and it actually happened tonight.  Over and over.  Nice, whole round numbers.  In big clumps and bunches.

Update- just checked in on Mt. Gox again and they're STILL trading whole numbers.  751.00000 as of this posting.  5 zeros past the decimal point!

bunzbunzbunz's picture

why the fuck would that be surprising? There are still probably in the thousands of people trading more than 1.0 BTC. The majority of people like to use round numbers. When you've been holding since $0.10 / BTC, you dont care about the cents.

nmewn's picture

Stawbiliteee! Its a wonderful currency, its perfectly secure!...ROTFL!!!

The one with it, is now too damned greedy to part with it and the shopkeeper is too afraid to accept it because he may be cheated before he can enter it into his


Poor Grogman's picture

Bitcoin has really livened up the chatter around here.

Just as well as everything else has been devoured by rogue algos

fonestar's picture

It's okay.  I personally recommend people have at least 75% of their portfolio invested in BTC.  The rest in silver and copper coins for safety.

XenoFrog's picture

Careful, people might think you're serious.

fonestar's picture

Huh?  I am serious and I am offering investment advice.