This page has been archived and commenting is disabled.
Bitcoin Trades Over $1000 On BTC China Exchange And Crashes 30% ... Then Rebounds
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:
»
- 51557 reads
- Printer-friendly version
- Send to friend
- advertisements -
Today was an actual breaking point. It went from people who had bitcoins having to pay or spend time to advertise for them. Now Google is doing it for free. Name a product that Google mentions on it's news page that doesn't become profitable.
Just about anyting is profitable to someone. The ISSUE is HOW MANY can profit.
Well that all depends on faith doesn't it? The dollar has profited nearly everyone involved at some point. Diversify and on average, you succeed.
I feel like I remember you presenting that you were a farmer. Farming is only profitable if the average person DOESN'T farm (other than subsistence obviously). If you produce 10,000 eggs per week, and every 5th person produces 10,000 eggs per week, you are all wasting your time and throwing away eggs. So you have to bet that other people will be more afraid of wasting their time than you are.
It is so simple. No matter what you do to make money or gather food and sheltering supplies, YOU ARE MAKING A BET. You can lose that bet or win it. When other people go along with the system you subscribe to, you win. When they don't you lose. Everyone is trying to take advantage of everyone else - or they're eating bugs.
How many dumbfucks have any money to play this thing? Dumbfucks can maybe afford to buy shit and fill their garages with energy drinks for a few hundred bucks. The smart money isn't going to drive this gig. Unless Algo's kick in to keep pushing BTC higher, the ride is done.
Party's not over. India called, said he had to work late, but catching a taxi on over right now.
That's the most intelligent thing you've said all day!
Fuck yeah Fonz...I'm totally taking delivery of my bitcoins.....wait....what the?
Maybe just sell a few and grab a shitload of ASE's and roll around naked with them knowing they were financed in full while you sat at your computer eating bon bons watching Oprah.
It took you like what, two days to become the bitcoin cheerleader. Congrats
i've said all along to use the market to finance phyz purchases. it's got nothing to do with bitcoin. it has everything to do with working the system to your advantage. or you can just live life angry and throw stones. your call.
Assuming it all worked out perfectly. But Fonz, what if you lost a shitload in BTC and had to sell your ASE's to cover your losses? Thought experiment.
i would not have a shitload to lose in any one thing. only play with what you can lose
And congrats, you actually use logic.
BINGO! 1st rule of speculation and gambling.
2nd rule: Never get into anything you don't know how to get out of under acceptable terms.
I believe that is why Ponzi schemes are illegal. There are no terms for those who get in last.
Over.
3rd rule
Never drive faster than you can see....
I guess that's the difference. The people "working to system" ain't that grand.
Congrats, you're a twat.
+ 1
You first though...
It's all good as long as your laptop works and the gov dosen't drone it. Even the little guys can manipulate this one.
Wondering if there's a liquid Bitcion RMB market?
btcchina.com
It's been bigger than the USD markets for weeks.
Tulip bulbs, bitchez!!!
Witty, yes. Accurate, NO.
In the interest of accuracy, you Tulips do not meet most of the requirements of "money". They were a speculative ASSET, not currency.
I was mostly being facetious. Just like the tulip bulb craze, a few people got in on it at the right time, made an assload of money and got out without being hit in the ass by the door. Personally, I think it looks like a bubble and it's gonna settle down much lower.
But hey, WTF do I know?
ain't much work to make a tulip, friend. your computers will fry before you getta a bitcoin, though
The spread on these trades is insane! I just saw a 10% spread (bid at $600, ask $660).
That's normal on high volatility trades. Options on VJET had a 20% spread today.
Getting the 'Gold' treatment I see...
The FBI had sell stops triggered at 900 - 1000.
Silk Road gold.
Over.
Bitcoin is operated like a penny stock. You have players making cross-over trades to pump up the price. Bitcoin liquidity is very low, so cross overs are easy, and so is collusion.
Also, a small group (Winklevoss et al) control the bulk of the coins. Price discovery is determined by back door deals, later manifested in cross over trades.
Only ppl getting rich are the ones promoting it.
Winklewanker Brothers = Hunt Brothers.
Everything is circular
Didn't silver eventually become higher in price after the Hunt manipulation?
Yes, everything is circular, including this circle jerk all the BTC cheerleaders are doing as I type. Gonna be some flacid members when this thing blows it's top off, does a space shuttle Collumbia, and nobody has any tissues left to clean up the mess.
The only reason it is over $28 is that the Chinese have entered in a big way. The bitcoin mania has spread quickly. The Chinese have a tendency to buy things that appear to have some value but really don't. i.e. US Debt/dollars, digital currencies, etc.
A lot of bright people who entered early are already headed for the door. This is not going to end well....
Let's see... $0.80 back in 2010, now $800. That's 1000:1.
Start with $10k in 2010, and you got $10 Mil now. Not bad. Buys a LOT of lifestyle and PM, given current prices.
$10k @ 80 cents would have equalled 12,500 units. What was the float in 2010? Selling a load of 12,500 in one swoop is certain to drive that price South. I'm just applying the same logic that the stock market is faced with. The air typically gets thinner at the top.
Selling 1 btc per minute you could exit 12,500 in about a week without too much downward pressure. There are 3,600 coins minted every day.
That's EXACTLY what it looks like - a little penny stock being operated by a bunch of insiders. Except on a global scale - who knows how big these swings will get? 'Kids, great news, we're going to buy an island in the south pacific and spend the summer there. Just give me a second while I cash out my bitcoins and... sorry guys, looks like you're spending the summer playing in the sprinkler, dammit, I thought I had it timed and.... WAIT A SECOND, LOOKS LIKE THE PRIVATE ISLAND IS BACK ON AGAIN! Doh, DAMMIT, THIS FUCKING CONNECTION IS SO SLOW!!!'
It was started by some dude a few years ago with NO corporate/state support, advertising, regulations, or any of that really. What else would you expect at this point in its adoption phase? When it does stabalize, you'll be stuck on the right side of the decimal point.
Finally something the little guys can manipulate.
Gee. Only $700? Wasn't it around $200 the other day? That's one bear market I wish I was in...
Apparently the people who loved it at $1100 didn't like it so much at $1000, $900, $800...
I think they love it again, although by the time this posts they may hate it again,
Fuck it. I give up. This shit is crazy. It's something to trade, that's about it. Too many powerful people/ .gov's have too much to lose if the current fiat system implodes. Alot of people will die before they unlock the chains of fiat.
Buy low, sell high. Good luck.
When did Bitcoin crush in april? before or after the metals? ..
Gold selloff was actually kind of slow-mo from 4/2 through 4/17, but the sucker-punch day was 4/15. The bitcoin spike and crash happened before, on 4/11.
Thank you. I remember quite well the crash in the metals between fri 12 and mon 15.. so BTC crashd the day before, 11.
wonder if there's any connection ..
US Fed should have bought some bitcoin instead of thinking about printing a 1 trillion coin - or does bitcoin make them think they can get away with a trillion dollar coin?
Maybe Bitcoin will be the new $1T coin someday.
When the hyperinflation hits, how many Bitcoins will it take to buy a loaf of bread?
With or without electricity?
I envision solar flares, with techies frantically taking to their bicycles on blocks without wheels, in their darkened living rooms, with the chain hooked to a small generator, desperately searching for some sign of life for their currency.
Prolly jus me tho ;-)
Wood chips.
No gain without pain eh?
( or without chain)
There is probably some branch of the NSA that is focused exactly on that.... Gotta have something to do while they wait for that huge data center to complete in Utah.
As long as a Bitcoin cost more than a Silver Eagle "The Market" is on an acid trip... What a long strange trip its been.
I'll take cyber coin for $1000 Alex... Not
Seeing you're the clever, wise and shrewd type, may we assume YOU got in when it was at < $1 ? And that you're filthy rich now?
Bitcoin is acting as a perfect inverse indicator of confidence in the worlds financial systems. Well done.
We all know why. It was a market order :)
This shit is crazy. This is too volatile for me but I congratulate any ZHer that's made a killing off this
I wish I were the person who loaded up on bitcoins 2-3 years ago, when they were a quarter a pop. I want to be the person who stacked up the bitcoins at that price and just forgot that they even had an account then opened the long-lost account a few minutes ago to realize that he was now an instant multi-millionaire. Yep, that would be nice.
i just want the box the 10000 btc pizza came in .....
I cannot avoid but to think that BTC is just a distraction/set up aimed at herding investors away from physical gold. BTC is like a shining light attracting those of us who hate TPTB and want to establish a honest monetary system. When the time will be ripe, TPTB will snap its finger and outlaw BTC with the flick of a pen writing a new set of laws. And those who invested their hard earned savings into BTC will lose everything and TPTB will have succeeded at 2 things: 1) millions of dollars will have been invested away from physical gold for a prolonged period of time, 2) Those who oppose the Money Masters will be taken to the cleaner and loose everything.
When I see China’s, Russia’s and so many other central banks hoarding gold, it tells me that at one point in the future, gold will shine again.
I don’t hate BTC. I think that the concept is great. But I can’t help but think that a lot of people will end up being hurt by it at some point in the future. And I hate to think that the Money Masters are actively using BTC to divert investors’ money away from real physical gold and silver.
If over the next month gold went to 5k. Then in one week it went roaring to 7k then in a few hours it roared up to 9k and then "crashed" back down to 6k I am sure we would all be laughing at it.
Good for the bitcoin people. If it goes to zero at least they had one hell of a ride.
You're welcome, gold is on sale then. Go get some more.
Boy...I sure hope the lights stay on so I can cash out ;-)
SOlar power baby !!! That way you only spend money when the sun be shining!!!
bitcoin = penny stock
Bitcoin = TCP/IP of money. It is a protocol. A value transfer protocol that will quickly disrupt many industries.
BTFD !!!
Is this a dip?
BTFD !!!
Is this a fucking dip?
You're asking me ??? I don't know a fucking thing, I bought Gold !!!
One things for sure, we are going to have to remake "Its the Great Pumpkin, Charlie Brown !"
The new one goes something like this
Linus: I got a bitcoin !
Lucy: I got a bitcoin !
Peppermint Patty : I got a bitcoin !
Charlie Brown: I got a Gold Maple Leaf....
LOL
That escalated (and then de-escalated) quickly! Whipsaw time.
Crazy, yes, but it's going much higher.
Just research the mining cost dynamics for 1/2 the answer.
The other 1/2 is that the market has chosen it, regardless of contrary opinions.
If by mining dynamics you mean electricity costs, take the numbers on blockchain.info with a grain of salt. The newer ASIC miners are around 1 watt per Gh, not the 600 watts blockchain still uses from the GPU miner days.
If you mean the exponentially rising difficulty due to massive over-investment in hardware, yeah that's gonna be fun come January. If bitcoin doesn't stay way up here in the stratosphere, I suspect many people might switch over to alternate coins, at least part time, while they mine at an operating loss.
Yes. Difficulty, competition, equipment and electrical costs.
I have a friend who is a miner and who hosts miners.
I loaded up at $900 on Gox..
Am I fuckt?
Half hour later I sold at $600..
Am I fuckt?
Only 33% fuckt! Just the tip!
Don't worry, it'll be 150k$ by christmas. Just don't sell!*
*Help prop up the price with your meagre investment so that the big fish can escape.
I'm up mid-5-figures even with the drop, I'll keep showing the fish the exit door if this is the outcome.
Likewise.....very profitable evening. It is abundandtly clear "xenofrog" has no clue about this, other than to spew hate. That's a perfectly natural reaction though, people fear what they cannot comprehend. Perhaps xeno should pay a nice visit to the crayon hut with the special scissors and round paper (wouldn't want papercuts).
Not, if you buy it again at $1,000!!! Haven't you heard Bitcoin is going to $100,000?
Oh it will go higher than that....
Or not. So will GE. Faster slower. Pretend to know.
...
Is that the same as Gold going to $10,000?
If you have to ask, then no.
Buying a Bitcoin seems like a protest vote against Fed and U.S. Government control over world monetary policy.
Clearly some people are willing to pay any price they can afford for that privilege. It sure as hell beats the value of a vote for President.
True enough. But if all the money donated to Ron Paul's campaigns was instead invested in physical silver, the markets would also be different.
Stay thirsty, and keep voting my friends.
Huh? I just use them for the 'free next-day shipping' promotion on the twenty kilos of Burmese #3 Snows of Heaven. I can never find those on-line coupon codes for free shipping when I need them.
Not over yet. Volume too thin.
Damn, I was updating in real time on the other thread. It hit just over $1,200 in CNY before dropping $300. Looks like the floor is $900.
<---- Floor is at $900
<---- Floor is at $0
-_- ... beats me.
I think you're going Japanese, I think you're going Japanese, I really think so.
Steer clear of all things Bitcoin. The Bitcoin bubble is upon ye.
Thanks for the advice, sherlock. Think I'll retire now.
Looks like bitcoin is not the only thing to go viral as of late.
http://www.theguardian.com/books/2013/nov/18/fifty-shades-of-grey-viral-...
Fifty Shades of Grey goes viral – literally Library copies of the bestselling sadomasochistic romance were found to carry traces of herpes and cocaine ...There are times when words fail to convey the sheer wtfness that strikes me when I read that copies of BDSM-porn books "carry traces of herpes and cocaine." Jesus jump to hell on a pogo stick, there are some fucked up peeps out there.
Rumor....NY Fed selling Bitcoins....
Currently trading at $760 with and then dipped down to $665 and then $611 and now $710. It is insane.
http://fiatleak.com/
Gold and silver, real money, falling as usual.
The crazy fluctuations are due to market fragmentation. Mt Gox is for trading only, if you want to cash out, you can only extract $1000 to maybe $10,000 and they are something like 16 weeks behind on processing withdrawals. As far as I can tell, this applies to all currencies, not just USD.
fiatleak is drawing data from multiple markets, and each exchange has different limitations on depositing and withdrawing money, especially USD due to regulations.
Pretty pointless as a currency. I certainly wouldn't like to be offering goods priced in it.
I guess it's only for speculators to own, until this "stablisation" I keep hearing about.
this is the kind of thing that happens when the illusion of fiat currency falls apart. people just find a newer, hi-tech illusion.
How come at BlockChain the quotes & chat aren't flying real-time like it was last night??
It's shift change for the bitcoiner true believers. They'll be here soon.
XenoFrog I think it's very brave of you to have stood in front of this train so many times.
Keep up the good work.
Check the prior thread. I was updating with commentary every 2 minutes during the collapse.
Thanks, which thread is that?
The Grantham thread: http://www.zerohedge.com/news/2013-11-18/jeremy-granthams-gmo-sp-approxi...
tanked to 600 ... giggles.
calling nanex.
me thinks there must be a really good story somewhere else- distraction extordinaire!
http://i.imgur.com/A9hq2x5.gif
As an "investment", it behaves like a pink sheet stock.
As a currency, who would want a currency that losses 33% of it's buying power in 30 seconds?
This is starting to look quite silly.
Why are the Chinese buying it at $935 (5700 yuan) and Americans at $700? It does not compute.
http://fiatleak.com/
it does not
compute
Ahaahahahaha.. Full electrocurrency does not compute..
ahahhahhahaha
There's some large bitcoin arbitrage oportunities if you can figure out how to make them work.
The US bitcoin market is not liquid at all due to the regulatory environment and bitcoin availability. As a result the coins can't change hands as fast as they can in other markets.
That's a big If. I can't come down on either side of this fence, at this point. And will, no doubt, be way too late to the party either way.
I threw my 100% risk capital at it at the beginning of the year. I agree with some of the analysis out there that this either goes to zero, or goes to a really big number, but the money I put in is money I am OK losing completely. So far I've done well. The right attitude lets you play both sides of the fence.
So, are you selling at all? I've never been a ''gambler" except in poker and pool (which isn't really gambling). But this does facsinate me. I guess I just came down on the "not" side of the fence. Barter has been part of my lifestyle for a long time now and has served me well. Tools, food, materials, etc. I always appreciate your comments.
No, I'm in accumulate and hold mode. I'd consider selling my current stake if I see the same rise on my current holding as we saw from the start of the year. (I actually mined a few bitcoins back when they were sub $10, but not enough to get too excited over.) We're up 70X from January, I think if I see 50X from where we are now I'd probably exit unless I was totally convinced it was going another 50X. This really is all-or-nothing risk capital to me. I don't really consider it gambling if I do research and make a plan I stick to, even if I do end up losing money.
I have gifted a small amount of bitcoin for educational purposes, probably on the order of 2 BTC this year or so. Not really selling per se.
You cannot get out with USD, so they are just a pricing mechanism. With Yuan, only Chinese citizens with a Yuan bank account can really use the Chinese exchanges, and there are captital controls limiting their ability to convert to other currencies or move the money overseas. As a result, it is hard to arbitrage.
The European markets are getting dragged upwards by the Chinese, but it looks like the spread may be a permanent new feature, as long as China has capital controls.
I'm almost out of popcorn, must be getting close to the END.
W
T
F
?
?
?
This reminds me of 1979.
I watched fiatleak.com over the course of the last week and saw that the bulk of the trades were made in China. With the market cap at only 7.2 billion now, I really think that a Chinese consortium is attempting to corner the market. They certainly have enough money. The FED could completely eliminate bitcoin if they just started buying every thing in sight ... well they could have but like everything else that's rare on the the Chinese already acquired it from us.
There are about 11 million coins out there. I wonder how many are on the Chinese side of the market, compared to how many are out here in the "free" world. You see, if there are only 50,000 bitcoins in all of China, it would be easy to corner, but just a drop compared to the rest of the coins out there.
They don't have to rely on Chinese Yuan ... they have everyone elses
Well...I certainly missed the boat on this one but I take comfort in knowing that our days with gold and silver will one day be just like this...even larger though.
How will that happen tho if the fed and its primary dealers are rigging the paper precious markets to game the spot prices downward? The fed is still printing so they can play metals from the short and long end and keep the price where they want it instead of where supply n demand says it should be. Industrial use of silver worldwide should have silver at 40/z.
Sum ting wong is involved? ho lee fuk!
Is there a future on bitcoin volatility?
Blue horseshoe China likes BTC this week.
Consider trying to price your time in bitcoin.
A couple of days ago, I would be charging .25 bitcoin per hour. Today, that would be two times that. Has my work improved that much? Or has the dollar declined that much?
Bitcoin is cool and I think it has a future. But not like this craziness.
The entire market has gone haywire. The FETID FED members are hoping this will be positive for inflation.
biTulip
i know what you were trying to convey , but all i keep getting is ... delicate lil' danish labia.
"The government needs to step in and protect people from this kind of volatility." - The Government
Maybe GS could come in with a recommendation.... Yeah, that's the ticket....
Newsflash anyone caught trading in BTC will not be elligible for coverage under the ACA.
If that doesn't push bitcoin to $10,000, I don't know what will!
ehhhh, you're in miley cyrus terrority going there...
Can't wait until Tyler puts the deer back up.
When Bitcoin crashes hard, and it will, I predict that Fonestar's silence here will be deafening.
LOL
Sorry you missed out, Bay of Pigs. We tried to convince you. :)
I want no part of Bitcoin when I see this kind of ridiculous and extreme volatility.
Thx anyway. Good luck.
My question is does volatility feed on itself, or does it naturally extinguish? I would think that as a security takes sudden 10% swings, traders would enter, sell at 8% up, then buy in at 8% down. It can't keep swinging so quickly can it?
If the Chinese Maniacs are using HFT algos, anything is possible. Unlike the regulated markets, however, there are no mulligans. If you fuck up, you eat your losses.