Bitcoin Suddenly Plunges

Tyler Durden's picture

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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arbwhore's picture

"This thing could go to a million." - Hugh Hendrey

HedgeAccordingly's picture

must be HFT.. well probably not.. thin and no MM's.

Live Bitcoin/USD Chart

OrangeJews's picture
OrangeJews (not verified) HedgeAccordingly Nov 3, 2015 3:01 PM

ROFL!!!  Where's Fonestar???

highandwired's picture

this is a healthy correction


Ignatius's picture

Yeah, "healthy" like the gold market.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Ignatius Nov 3, 2015 3:08 PM

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.

highandwired's picture

can't speak for "people" but for me...the more volatility the better

bring it on!

xrxs's picture



And it's coming back.  I've seen this before, and it's usually been a good entry point.

Poundsand's picture

"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

Reichstag Fire Dept.'s picture

Alderaan is (was) on Bitcoin?! 

coinhead's picture
coinhead (not verified) 15horses1donkey Nov 3, 2015 4:19 PM




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.

coinhead's picture

Nothing can stop teh Bitcoin!

coinhead's picture
coinhead (not verified) Poundsand Nov 3, 2015 4:24 PM

Nothing ever goes wrong in Bitcoin land!

Paveway IV's picture

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. 

highandwired's picture

nothing goes up in a straight line

RogerMud's picture

have you heard about the S&P?

RaceToTheBottom's picture

US caused.

First rule of FED-nance:
There will be no competitors to the Dollar.

Second rule of FED-nance:  See the first rule. 

Bank_sters's picture

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?  

highandwired's picture

Tell me when it will be time to sell my Bitcoins for debtfiat plastic rectangles

Bank_sters's picture

Your shitcoins have so much counterparty risk that plastic might be a better investment.

crazytechnician's picture

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.

Bank_sters's picture

The very fiat currencies themselves!   And add in govt intervention and bitcoin goes to shitcoin in a bad rap second.

espirit's picture

If you value your BitCoin in $USD...

That's your counterparty risk.

Zero Point's picture

Screaming "BUY! BUY! BUY!" into a Fisher Price telephone in a lunatic asylum.

ShorTed's picture

Turn those machines back on!

coinhead's picture
coinhead (not verified) Zero Point Nov 3, 2015 4:20 PM

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.

crazytechnician's picture

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.

crazytechnician's picture

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.

nuubee's picture

Bitcoin is neither paper, nor electrons. It's math.

crazytechnician's picture

This guy is way , way confused , both silver and paper are electrons ....


Light an inflationary match to both, and see what happens.

coinhead's picture
coinhead (not verified) OrangeJews Nov 3, 2015 4:17 PM

ROFL!!!  Where's Fonestar???

Right here!

38BWD22's picture



I got some gold at $410 / BTC.


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....


EDIT: $387...  Time to go get some more...

Latitude25's picture

Wow you really called that! 

38BWD22's picture



Buena suerte, nada mas.

Normally my timing is very bad.

Latitude25's picture

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.

sleigher's picture

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.

highandwired's picture

China sleeping right now, watch this baby in the evening

HedgeAccordingly's picture

trades technically well

Neil Patrick Harris's picture

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.

alphahammer's picture
alphahammer (not verified) Nov 3, 2015 3:01 PM



Bay of Pigs's picture

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.