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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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There's a name for cheerleaders in the stock market. I believe it is "bagholder".
Standard Disclaimer: Notice how the cacaphony of bitcoin bleats, shuffling of hooves, and other random brain farts has suddenly quieted now that bitcoin has plunged.
Define "plunged," please.
It was $1000 in January 2014, not so long ago. The wild west is for cowboys.
It's up 12% on the day - do you know basic math ?
Electronic block chain beanie babies.
I expected that too.
Wow that brings back some memories - the old beanie baby stuff , shit I remember hearing that when bitcoin was $2 , where have you been hiding , you finally came back out of the basement to catch some rays and Vitamin D ?
Aaaaaaannnndddddd its already back up. Thats how bitcoin rolls. So funny today. Zerohedge is like "Bitcoin is UP!!!!"....."Bitcoin is DOWN!!!"....."Bitcoin is UP!!!"...."Bitcoin is DOWN". Thats how this currency is. Lots of volitility, not a very big market cap yet. Great for bot trading, my bitcoin bot made me money today, did yours??
Bitcoin: the only commodity that plunges upwardly.
yaaay! volatiltitty is back!
The Chinese elite will buy it with their loot, thus it will go up. The next day it will go down when they take the loot out to buy a new apartment in San Francisco or wherever. So what if they lose 5 or 10 % on the transaction. The important thing is the money is out of China.
Bitcoin doesn't give a shit what the fiat price is. The machine doesn't stop and a new block is added every 10 min being valued at 1 cent or 100k dollars per unit. Also, take a look at Ethereum (Microsoft is on it), the evolution of Bitcoin.
Do people who own Bitcoin also own shares in Tesla?