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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Mon, 11/18/2013 - 21:41 | 4167844 The Gooch
The Gooch's picture

Paging Fonestar

 

Mon, 11/18/2013 - 21:48 | 4167873 fonestar
fonestar's picture

I am here!

Mon, 11/18/2013 - 21:50 | 4167884 The Gooch
The Gooch's picture

for fuck's sake man!

Mon, 11/18/2013 - 21:55 | 4167911 flacon
flacon's picture

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

Mon, 11/18/2013 - 21:56 | 4167925 Ignatius
Ignatius's picture

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

Mon, 11/18/2013 - 22:07 | 4167966 The Gooch
The Gooch's picture

Yeah.

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

They're gonna build vast urban foarward centers.

http://www.zerohedge.com/news/2013-09-21/chinas-ghost-cities-are-multipl...

Mon, 11/18/2013 - 22:43 | 4168134 Scarlett
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.

Mon, 11/18/2013 - 22:55 | 4168187 fonestar
fonestar's picture

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

 

http://www.youtube.com/watch?v=1UUKbdjokHE

Mon, 11/18/2013 - 23:23 | 4168269 CPL
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

lol

Mon, 11/18/2013 - 23:28 | 4168284 fonestar
fonestar's picture

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

Mon, 11/18/2013 - 23:52 | 4168370 jomama
jomama's picture

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

Tue, 11/19/2013 - 00:10 | 4168402 nope-1004
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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.

 

 

Tue, 11/19/2013 - 00:12 | 4168447 fonestar
fonestar's picture

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

Tue, 11/19/2013 - 00:21 | 4168468 James_Cole
James_Cole's picture

Well, been a trip. 

Tue, 11/19/2013 - 11:58 | 4169676 gold-is-not-dead
gold-is-not-dead's picture

High:$900.97998
Low:$502.62120

ChaChing$

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.

Tue, 11/19/2013 - 17:44 | 4171447 TwoShortPlanks
Tue, 11/19/2013 - 00:32 | 4168490 CPL
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.

Tue, 11/19/2013 - 09:17 | 4169057 boogerbently
boogerbently's picture

Flash dash then crash of trash.

No pity.

Tue, 11/19/2013 - 00:29 | 4168485 fonestar
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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.

Tue, 11/19/2013 - 00:34 | 4168492 FEDbuster
FEDbuster's picture

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

Tue, 11/19/2013 - 01:07 | 4168562 fonestar
fonestar's picture

We are talking current monetary units of exchange...

Tue, 11/19/2013 - 12:01 | 4169694 gold-is-not-dead
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$1 = 1 satoshi

Thu, 11/21/2013 - 03:34 | 4176594 boogerbently
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Bitcoin:

on the gold standard?

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

Tue, 11/19/2013 - 00:36 | 4168493 James_Cole
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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). 

Tue, 11/19/2013 - 00:39 | 4168501 fonestar
fonestar's picture

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

Tue, 11/19/2013 - 00:52 | 4168530 James_Cole
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. 

Tue, 11/19/2013 - 01:10 | 4168565 fonestar
fonestar's picture

 

 

 

 

 

What I mean is this:

BTC/GOLD

vs.

BTC>>USD>>GOLD

 

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

Tue, 11/19/2013 - 01:18 | 4168580 putaipan
putaipan's picture

dear infinity- you forgot to say " beeeeaaatchezzz ! "

Mon, 11/18/2013 - 23:26 | 4168278 bunzbunzbunz
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

Mon, 11/18/2013 - 23:51 | 4168368 disabledvet
disabledvet's picture

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

Tue, 11/19/2013 - 00:21 | 4168469 fonestar
fonestar's picture

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

Tue, 11/19/2013 - 00:44 | 4168514 putaipan
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.

Tue, 11/19/2013 - 01:10 | 4168569 fonestar
fonestar's picture

?

Tue, 11/19/2013 - 01:37 | 4168608 tsx500
tsx500's picture

excuse me stewardess , i speak jive !

Mon, 11/18/2013 - 22:56 | 4168172 NoDebt
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.

 

Mon, 11/18/2013 - 22:57 | 4168192 Matt
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.

Tue, 11/19/2013 - 01:15 | 4168574 putaipan
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.

 

 

 

 

 

 

Mon, 11/18/2013 - 23:31 | 4168288 Bunga Bunga
Bunga Bunga's picture

Let 1.2 billion Chinese gamble for 12 million Bitcoins.

Mon, 11/18/2013 - 23:10 | 4168232 bunzbunzbunz
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 http://freebitco.in/?r=25727

Mon, 11/18/2013 - 21:50 | 4167889 Stackers
Stackers's picture

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

Mon, 11/18/2013 - 22:00 | 4167943 putaipan
putaipan's picture

tanked to 600? giggles.

calling nanex ....

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

Mon, 11/18/2013 - 23:09 | 4168195 NoDebt
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!

Mon, 11/18/2013 - 23:19 | 4168262 bunzbunzbunz
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.

Mon, 11/18/2013 - 22:00 | 4167948 nmewn
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 ledger...lol.

Gawd.

Tue, 11/19/2013 - 07:24 | 4168876 Poor Grogman
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

Mon, 11/18/2013 - 22:10 | 4167986 fonestar
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.

Mon, 11/18/2013 - 22:19 | 4168033 XenoFrog
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Careful, people might think you're serious.

Mon, 11/18/2013 - 22:24 | 4168058 fonestar
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Huh?  I am serious and I am offering investment advice.

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