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Bitcoin Suddenly Plunges
Following what has been a tremendous surge in bitcoin, which as we noted earlier had doubled from its August lows, rising as high as $420 less than an hour ago, a furious selling program was unleashed moments ago taking down the digital currency by nearly $50 on a sudden and dramatic surge in volume.
To be sure, there is nothing wrong with profit taking after such a parabolic move, however we were under the impression that the kind of furious block selling - which is intended to take out the entire bid stack and reprice an asset to a lower baseline - was reserved solely for gold, courtesy of the BIS.
It appears Virtu, or the NY Fed, may have finally noticed the dramatic surge in this alternative currency. What happens next will be up to the influx of new Chinese buyers who as we predicted two month ago when BTC was $230, have nearly doubled the value of bitcoin in two months in order to bypass China's tightened capital controls.
With this kind of volatility, we are curious how long before a new generation of traders, the same who are currently watching paint dry in equities and FX courtesy of a seemingly endless short squeeze, migrate to this asset class which suddenly is boasting the best volatility on the planet, if only for the time being.
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"This thing could go to a million." - Hugh Hendrey
must be HFT.. well probably not.. thin and no MM's.
Live Bitcoin/USD Chart
ROFL!!! Where's Fonestar???
this is a healthy correction
Yeah, "healthy" like the gold market.
WHAT?!?!?!?! NOT ALLOWED. The people having BitCoin orgasms just told me that BitCoin is going to the moon.
Didn't happen/not happening. Fake, fake, fake, Chinese imitation data.
can't speak for "people" but for me...the more volatility the better
bring it on!
Reminds me uncannily of a Blythe maneuver... time to switch back to PSLV?
huobi seems to be down
Source?
And it's coming back. I've seen this before, and it's usually been a good entry point.
"I felt a great disturbance in the Force, as if millions of voices suddenly cried out in terror and were suddenly silenced. I fear something terrible has happened."
- Sum Ting Wong
Alderaan is (was) on Bitcoin?!
It wasn't me.
http://zhc0.com
OMG SO MUCH BITCOINZ SO MUCH WOWZ!
...and it never will be.
15 horses1donkey.
Silver or gold, dip shit.
That - is Zero Hedge tradition based on historic realities.
Any coin affiliated with Zero Hedge better be physical.
Tyler is gonna crush your nuts for copyright infringement.
Nothing can stop teh Bitcoin!
Nothing ever goes wrong in Bitcoin land!
Don't see a downtime there. https://www.huobi.com/
The banks obviously read ZeroHedge and and became paranoid about a triple-leveraged bitcoin volatility index eating into their profits. The bastards are whip-sawing it on purpose now to inflate volatility. Your money-changing little banker pricks are going down one way or another.
I will enjoy witnessing the Chinese destroying our evil banking empire once and for all. All the bailouts in the Western world won't help us survive the chaos that ensues once the full extent of the epic Chi-scam known as Chinese banks and SOEs implodes, pulling in all the linkages to Western banks people didn't think existed.
How bad will it be? Well, we're packing up the flying saucer and leaving the planet until this blows over. Between Chinese banks and the high-luminosity clownfuckery in the Large Hadron Collider, you shaved monkeys are in for a world of hurt. People in other dimensions are even afraid, and they don't even use Bitcoin.
nothing goes up in a straight line
have you heard about the S&P?
US caused.
First rule of FED-nance:
There will be no competitors to the Dollar.
Second rule of FED-nance: See the first rule.
Hey buddy, I just wrote that shitcoin was fine until it wasn't and you railed that I was some philistine who didn't understand. What gives?
Tell me when it will be time to sell my Bitcoins for debtfiat plastic rectangles
Your shitcoins have so much counterparty risk that plastic might be a better investment.
Where exactly is the counterparty risk ?
You really do need to do some research , your ignorance was amusing for a little while but now it's wearing thn , you need to say something original.
The very fiat currencies themselves! And add in govt intervention and bitcoin goes to shitcoin in a bad rap second.
If you value your BitCoin in $USD...
That's your counterparty risk.
Screaming "BUY! BUY! BUY!" into a Fisher Price telephone in a lunatic asylum.
Turn those machines back on!
fonestar is not in teh lunatic asylum
Fonestar bought in when Bitcoin was 1.98, so he is all good with cost averaging.
Just because you call it magic bank proof currency means jack shit.
Shitcoin seems to be modeled after the stock market - rope some muppets in for a joy ride, then fuck them up the ass, and dump them in a river with cement overshoes.
Paper or electrons - not a smart investment.
Just like silver markets then.....
Silver for the wise investor is physically held metals period.
If it is not in your possession, you don't own it.
In 1964, a paper or silver dollar bought 4 gallons of gas.
In 2015, spot price alone buys 6 gallons of gas where I live.
So, go finish your yoga exercises so you can keep sucking yourself off - you gonna need the extra protein.
You really displayed your huge intellect with that last sentence .. Is that really the best you can come up with ? You can get some extra college time in once you sell them 5 ounces you have been hoarding ... Should buy you a couple of hours atleast.
Bitcoin is neither paper, nor electrons. It's math.
This guy is way , way confused , both silver and paper are electrons ....
Light an inflationary match to both, and see what happens.
ROFL!!! Where's Fonestar???
Right here!
I got some gold at $410 / BTC.
Whew!
But, I still have some BTC left. Maybe now that it's backed off to $392 or so, I'll go buy some more from the BTM (BTC ATM).....
EDIT: $391.... ounce.me
EDIT: $387... Time to go get some more...
Wow you really called that!
Buena suerte, nada mas.
Normally my timing is very bad.
If you like speculation here's one: Aurora Cannabis, ACBFF. A friend of mine in Canada's son works for them. He says the new PM will legalize in Canada.
It dropped on BTC-E and is still around 370. Bitstamp, Bitfinex and Huobi are all still over 400. Huobi at 425 last I checked.
Also seems the large volume purchases are slowing right now.
I generally watch bitstamp @405 right now.
China sleeping right now, watch this baby in the evening
trades technically well
Yeah I used the fibonacci tool on bitcoinwisdom a few days ago and figured that 420 or so would be a short term top. I think that suggests that ~80%+ of bitcoin trading is done by algorithms. The APIs are much easier to use than the ones offered by etrade.
CHINESE MORTGAGES!!!!!
Amazing on a day where Obama raises the national debt to $20 trillion dollars, of which none will ever get repaid, gold and silver prices get nailed. It is insanity squared.
Welcome along for the ride BTC.
It's called M.O.P.E. or Management of Perception Economics. The U.S. Treasury with the help of the Federal Reserve and the big banks smash the gold price and ramp up the stock market on the day they raise the debt ceiling to just under $20 trillion. So the perception by investors and the public is that the administration and congress are managing things properly. How long they can keep the game going is anyone's guess.
MOPE is also played in the streets as Three Card Monte. Since... 4eva. Nothing new, except the Wheel of Fortune of new acronyms and weasel word euphemisms, to ensnare the gullible and befuddle the weak-minded.
You're on a ship with a mad captain. You don't get to determine the heading, but only on whether you'll be allowed to stay aboard or walk the plank.
Doesn't matter to me. I have physical bitcoins printed out in my safe deposit box. Still there like they were before.
/s
In today's times, who would ever put their money into something that needs the internet to function? As a gamble? Ok. To move money around? Ok. But as an insurance against anything? Oh jeez.
So in otherwords you deposited your bitulips into a bank.
You have angered the BitCoin gods...
The Bank regrets to infrom you that any contents of value in your safe deposit box have been liquidated. Enclosed, please find your physical bitcoins.
Thank You again.
"who would ever put their money into something that needs the internet to function?"
Like the stock market, or any business that relies on a distributed supply chain?
Hell, or Apple, facebook, Amazon, ...?
Yeah, why would anyone ever put their money into those things?
/s
This argument is the same as saying "why invest in PM, when everyone else is dead they won't be worth anything."
If the Internet disappears, you'll be having bigger problems than the value of your buttcoins.
Who now thinks Google Could Mint Bitcoin
Who now thinks Google Can't Mint BitCoin
by "mint" you mean what exactly?
what is your bitcoin worth when you aren't connected to the internet?
A chuckle on my face.
I know many people are very very ignorant when it comes to Bitcoin.
Here's some info you probably missed in your extensive study and examination of Bitcoin: Bitcoin does not actually need the internet!
Volumes in China still a _lot_ higher than in the rest of the world. BTC pricing has been dead since mtGox, however transactions in a steady rise. Eventually the financial community will realise that a "blockchain" without value, is also worthless. Nobody will _trust_ a private "blockchain" run by banks. Volatily will continue until the big grab will come. No idea to talk about what value will be when that happens. All that can be said is that it will be higher.
Blythely, it looks like a masterly executed PM-like take-down...
BTC ia still up 5% on the day. and an almost relentless rise over the last couple of months. Yes, there'll be pull backs but I expect this run to continue at least until the end of the year. There may be a correction after that, until everyone discovers that the nos. of BTC in production will half middle of 2016. At which point, we'll see another burst in its appreciation. Other factors will contribute to a gradual, medium-term appreciation. These include a growing sense that it is being recognized by institutional investors, the deepening of the ecosystem around it, punters driven out of fiat by volatility and depreciation, and so on.
Seen it happen already in 2013. Heard the same exact post as yours too. Fucking nothing ever changes anywhere I guess.
so you're saying the price action in 2015 is driven by exactly the same factors that drove the price up in 2013?
Corrigendum: BTC now up 8.81% on the day. Meltdown?
Holy shitballs bitcoin PLUNGES +10.11% on the day. What a disaster.
zzzzz......
I just can't seem to get past the fact that everytime bitcoin seems to get some momentum, the gangsters run off with all the cash, like MtGox and the silk roads, etc...
???
How do you arbitrage (as per the FEDs and Gold ) with bitcoin,
unless you have it to actually sell???
Inquiring minds...
Control an exchange and arb into people's account on the exchange.
Until the bitcoin is pulled from the exchange and placed on the blockchain, it's a ledger entry at the exchange, and not on the blockchain. Virtually all of the bitcoin fraud that's be perpetrated has been exchange fraud, Mt. Gox being one of the bigger ones. A lot of exchange "hacks" in the past that killed the exchange were just the people operating it leaving their customers holding the bag.
This isn't very different from the way CME handles metals.. Exchanges can rehypothecate bitcoin multiple times if they don't expose every customer's balance to public inspection.
That's why a prime piece of advice is to never leave your bitcoin on an exchange account, ever. Transfer in, trade, transfer out. "Banking" them at an exchange is an invitation to be robbed blind.
nevermind
Holding bitcoin at an exchange rather than your own wallet is like holding paper gold instead of physical gold.
Moving money in yesterday. Buy yesterday afternoon. Sell this afternoon. ACH the money back to the bank tomorrow. Cashed the check this afternoon. Money under the mattress tonight.
You guys are so serious.
By "money" do you mean fiat plastic/paper rectangles or do you sleep on the shiny?
Tonight I mean the flimsy. But it will be moved to "better" assets tomorrow or the next day.
I am intetionally trying to be flip. There are so many "advocates" of bitcoin running around. I am not one of them. I am an advocate about having the resources to feed my family.
If you treat this like day trading, close the night with cash, you can be fine. And you can skim a shit load of money.
Who knows if bitcoin is going to rule the world? I doubt it.
But the folks who whine about the internet being gone or all of the power going down do not seem to realize that nothing, and i mean nothing, but family and friends are going to help you through that mess.
So, take it easy. Take it as it comes.
"You guys are so serious."
Mt. Gox took nearly a half billion dollars of client money when they went down. That's serious money.
This is really no different than the advice around gold of "if you don't hold it, you don't own it."
A lot of MF Global gold customers and a lot of Mt. Gox bitcoin customers both wish they'd followed this advice.
That's what happens when HFT accumulations need to be sold and there is no one home. tough luck bitchezzz
don't look now, but it's going back up
SURPRISE!!!
Sucker bait...
It's good to see the ZeroHedge Top Jinx works or BitCoin too.
Like it or, in my case, loathe it, Bitcoin is far too volatile to be a safe form of currency, crypto or otherwise. Just my opinion...flame away.
CNBC has an article today predicting that Bitcoin will be the 6th largest reserve currency by 2020. This makes me think the whole Bitcoin thing may be effort by globalist oligarchs to wrest control of currencies from sovereigns and rule the world. Another reason to distrust it.
Where is the plunge protection team when you need them?
Meh, 99% of people who make fun of or hate BitCoin don't even know what BitCoin really is. Haters gonna hate. They do so because they are trying to hide their ignorance.
Hated the Internet circa 1995
Hated digital cameras circa 1999
Hated BitCoin 2015
Had they been alive at the time they would have hated the printing press, the automobile, the airplane, the fax machine, ships made out of metal, and the spherical earth.
Doesn't matter, though. Dinosaurs. Simply let them wither on the vine.
I guess you also loved
- Hydrogen economy
- Segways
- Betamax
- Ever increasing house prices pre Sept 2008
Throughout history, there have ALWAYS been more FLOPS than successes.
Once more, you don't get it.
Betamax failed, but the idea of VCR's didn't. In fact, they became really popular during the 80's.
Compuserve, AOL, The Source, etc. all failed. And yet the Internet still somehow managed to transform the world.
BitCoin may or may not eventually become a global reserve currency, but you haven't been paying much attention if you think that some cryptocurrency won't eventually. And right now, BitCoin vs. the other options looks a lot more like VHS or the Internet than it does Beta or AOL.
Exactly. Given its v1.0 grade limitations, I fully expect bitcoin to be obsoleted by a next generation cryptocurrency (or subsume it).
Here, "bitcoin" is just casually used to mean "cryptocurrency" the way early Betamax users used "Betamax" to refer to home video recording. Something that happens today on a DVR, but is the exact same concept.
What face-wrinkling incomprehension people displayed at the notion of recording television in one's own living room. Same reaction we're seeing here over bitcoin.
No incomprehension...cryptocurrencies are not unique, therefore the supply of them is unlimited. So much for value. Meanwhile, bitcoin gets singled out for MSM press attention, including from the likes of Bloomberg News and Paul Krugman. Again, why? I think it is because bitcoin is anti-gold and anti-cash and the authorities want to do away with both cash and gold in order to be able to rob the population more efficiently.
You have absolutely no understanding of Bitcoin
Bitcoin is not "anti-gold" or "anti-cash", it is anti-fiat!
It is like saying Silver is anti-gold and gold is anti-silver.
Your argument is just plain stupid
Bitcoin isn't "anti-fiat" it's just another type of fiat. But one with absolutely zero backing.
So what exactly backs gold ? A shovel and some digging is what ....
What backs bitcoin ? Huge amounts of energy and computational power.
Ultimately you are talking about a Shovel Vs. a Computer , the computer is way more advanced tool than a shovel.
BTW , you clearly don't know the difference between a fiat currency and a private currency:
Fiat is mandated in law to have value and traders are forced by law to accept it as payment , also government requires taxes to be paid in said currency. Bitcoin does not have any of these attributes of a fiat currency.
Ignorance will lead you nowhere , do more research.
So what exactly backs gold ?
5000 years of human history coveting the yellow metal and recognizing it as the premier store of wealth. THAT is what backs gold.
So what about when gold had only been used for 6 years ? What was it's backing then exactly ?
Now you're moving the goal posts, but okay, I'll play along ...
In year six, gold (and silver) was backed by the same market acceptance that it has today. Unfortunately for bitcoin, gold has something on it called "first mover" advantage -- which is why bitcoin continues to struggle in its quest to gain traction. Besides lots of other dubious crypto currencies out there bitcoin must compete with, it also has to do battle with two proven competitors with a 5000 year track record: gold and silver.
No one is dissing gold or silver. Say a new metal was discovered, unobtainium. It was also scarce, unprintable, compact, fungible, divisible...all the qualities of gold and silver. Would you shit on unobtainium just because it wasn't gold or silver and lacked a 5,000 year history? Or would you recognize it as also precious metal potentially serving as an excellent medium of exchange for all the same reasons gold and silver do?
I didn't say or imply anyone was dissing gold and silver. I simply made the point that gold and silver have the benefit of a 5000-year "first mover" advantage and bitcoin is at a disadvantage because of that -- a BIG disadvantage. It's just a fact.
If "Unobtanium" is discovered, it will suffer the same problem.
Except the "huge computational power" is a FAKE obstacle.
Like saying you can only mine gold by hand from a mine shaft that's 4000 feet deep. But if the price of gold goes up, then you can no longer mine the easy gold from 4000 feet, you can only mine more difficult gold from 10,000 feet down.
The original bitcoins could be mined on desktop computers in a couple of days. Now it takes thousands of ASICs consuming $200 to $300 worth of electricity to mine the same single Bitcoin.
Throwing up fake, arbitrary barriers, isn't real work.
So the best gold mines started out with large chunks of gold on the surface and it got progressively more difficult to mine. A traditional gold mine output drops by 50% every 4 years , exact same curve with bitcoin.
No, I'm talking about the artificially imposed barriers that bitcoin has.
It's the equivalent of saying that even if you have lots of gold on the surface, you can't use that gold anymore. All "new" gold sold into the system can only come from a mine that's 10,000 feet deep, even though it's identical to the gold on the surface.
"cryptocurrencies are not unique, therefore the supply of them is unlimited. So much for value."
You could say the same of all of the fiat currencies in the world. So why are some valued more than others?
That's something you might want to think about.
Actually, it is something you might want to think about...
Existing power structure
You guys dont get this do you? Its not an investment. Its a toy. Its fun. It might be serious, like a paper airplane was back in early 1903.
Anyone who is buying this thinking its going to pay for their retirement is crazy. But anyone is scooping a few bucks on these swings is not.
Money is money folks.
Next you guys will be telling me that dollar cost averaging over my lifetime is the best way to get a return out of the market.
I got my first look at the internet on a 9600 baud(that was fast, back then) IBM System/370 mainframe terminal in 1981. I made my money in the computer systems/telecom field. Bitcoin? I wouldn't touch bitcoin...pure sucker bait, in my opinion.
If you knew anything about computing you would see that bitcoin is nothing short of absolute genius.
Until the NSA holds the majority of the computing power in the mining network.
By doing that all they will be doing is making the network stronger and more secure .... You still don't know how this works do you ?
It is my understanding that the blockchain is subjected to a voting process to determine validity of transactions.
Once a single entity emerges with control over >50% of the miners, they can easily insert transactions into the blockchain, perform a rubberstamp vote, and then distribute the results to the rest of the network.
Basically, All of your bitcoin are belong to us.
I do not want geniuses to make my money. I want my money to be real simple so that I can understand it real easily...really.
Yeah , I can try to understand where you are coming from , but please understand that some of us have an IQ above the 60's range.
Betting against the meta-trend isn't very smart, and the meta-trend for humans is towards virtualization - of everything, eventually, even ourselves.
So when you see something new that does what the 'old world' version did, but does it a lot better by taking advantage of the digital/virtual world, it's a good idea to pay attention.
Simplify: Betting isn't smart...
Then don't get out of bed in the morning. Although, I guess that's always a bet too, right?
No, getting in or out of bed is *not* a "bet"...
Sure it is. If you get out of bed and walk across the road, you might get hit by a truck. If you stay in bed, the house might burn down. Or neither of those things may happen, or something much worse.
There's no such thing as perfect knowledge, so *every* decision you make is a bet.
Perfect knowledge is not the determinate of whether one is making a wager. Your argument is fallacious...it renders the term "bet" meaningless by applying to every keystroke you make on your computer and every breath you take...stupid, in a word.
I suggest you think more deeply about what a wager actually is.
Based upon your views on this subject, every man on this planet merits the description of "inveterate gambler" simply by being alive...by extension, your idiosyncratic linguistics render all words essentially meaningless. No one can say anything meaningful because one is not writing or speaking but, rather, gambling. One is not sleeping, but gambling...everything in life is a gamble, so all words must be defined accordingly, every definition the same. Bet.
Reductio ad absurdum...
Keep trying. I bet you'll eventually figure it out.
A sudden big drop like that? It's GOT to be rigged by the unseen hand. A manipulated market, you know, just like gold.....
Agreed...
While the market is clearly rigged and has been for a couple years, it's not very liquid and a single seller dumping on an exchange can take out the entire bid stack with not that much bitcoin. We saw this happen before in prior instances of big drops. If the sales actually make it to the blockchain, it does cost them real money, however.
The bitcoin markets are corrupted, but not as corrupted as the PM markets, due in part to the structure of the market around mining, the blockchain and the diversity of exchanges.
My suspicion is that there is a major holder that works with the montary PTB to try and disrupt momentum at key moments, but due to the nature of the market their impact is limited, unlike gold they can't just issue new paper claims infinitely. I would expect majro efforts to consolidate trading onto one controlled exchange in the future, the more they can move into an off-blockchain exchange the more rigged they can make the market. Many bitcoin players, however, don't want that to happen, so it'll be an interesting tug of war. My expectation is the echange consolidation will be forced via regulation under the guise of consumer protection.
More likely an automated whale sell order at 400 ... But of course that can't be true it's clearly a market manipulation by the illuminati ...
"Bitcoin Suddenly Plunges"
And so do precious metals...
Yes, gold is down almost 2% over the past month...horrors.
Bitcoin up 9% in the last 24 hours and you think it's crashing ... hilarious ...
Show me where I said bitcoin was crashing...today's move has nothing to do with why I dislike bitcoin.
You only dislike bitcoin because you don't understand it.
It's actually programmed into our genes - an irrational fear of the unknown - if you don't know what it is then run like hell because it may be a predator about to eat you.
Instead of hating the unknown , perhaps you should do some research and lose the fear.
Another thing that's programmed into our genes is irrationally liking something for the simple reason that other people like it and flock to it.
I see it all the time, that people deny and dismiss logic if they BELIEVE in something, when it's actually false. But they continue to deny FACTS, and insteady substitue their own BELIEFS.
Perhaps YOU should take a rational look at what exactly bitcoin is and isn't.
Actually I started out as a hater as well. Then I did some research and looked into the sourcecode. It's nothing short of genius.
I bought a Bitcoin Put on the Vix and called the exact millisecond "top"!!! Raked in a cool $274...what comes after Quadrillion??
Nevertheless, I just bought the United States! Y'all have 30 days to vacate.
Thanks.
TAALR is 'shocked' that Pump & Dump is used in BTC.
Who would have thought that?
The fact that a currency can swing so much in a day makes it more of a stock that a currency. I like the concept of bitcoin, but swings of 10+ percent in hours is not something you protect wealth with. JMHO. Crossing boarders, buying things short term maybe.
What you fail to realize is that Bitcoin is still in it's infancy. But hey, stay away if you wish, Bitcoin won't wait for you.
Glad I didn't make the "jump" in January 2014, when it looked like the only direction was UP!
Agreed. ButtCoin is rife with speculation and manipulation - and there is no ButtCoin government or regulator to support it. It moves more with the wind than with any fundamentals.
Jeez...it went up 30% in a few days, and ZH is freaking out because it dropped. Well, here is news...its back over $400 as I type.
The thing (BTC) is crazy. And you guys are taking it serious.
But what is serious? The $1000 profit in cash sitting on my desk. From less than a weeks investment. And less than $5k put into it.
That doesn't suck.
Bitcoin's market price reflects the influence of a gambling mentality. Everyone is free to fantasize as to its "real" value...
"real" value is zero. The price people are willing to pay for "nothing" determines it's market price.
Same as anything else. There is no such thing as 'inherent' value - it's always subjective.
Riiiggght...a market mechanism determines the market price of everything, therefore nothing has any inherent value and everything is the same, except...everything has a different price? Why? Because everything is *not* the same, that's why.
The notion that gold has no inherent value and might as well be 3/4 bluestone or bubble gum is a common fallacy designed to make gold look no better than anything else, when, beyond fiat, central banks hold only gold as reserves, which makes gold a *unique* financial asset.
Gold has physical and chemical properties. That's it. How those properties are valued is subjective.
Paper has physical and chemical properties. How those properties are valued is subjective.
A similar quantity of each (or of anything) may therefore have different prices, because the value of the properties varies with time and place.
But that doesn't equal some magical 'instrinsic' value. Eveything is just bits - how you (and others) value a particular configuration of bits and the properties it might have creates a market price, but that's all it is - a market price.
The ole Pump and dump gets them again...
Back over $400 on most of the exchanges now, and it's almost wakey-wakey time for the Chinese, who can now use direct deposit to invest with BTCC.
https://twitter.com/YourBTCC/status/661508507598917632
Or place a shit load of sell orders .....