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After Topping $500, Bitcoin Is (Again) Plunging On Extreme Volume
It appears a double in a week has prompted - just as we saw yesterday - some more profit-taking in Bitcoin as after topping $500 earlier today, the virtual currency has plunged (considerably more than yesterday) to $368 in late US trading as a high volume selling program was unleashed on the virtual currency.
As we noted during yesterday's plunge,
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.
* * *
However, someting else caught our eye.
While the recent rise (and rapid acceleration) in Bitcoin prices have become more mainstream since we suggested Chinese capital-control-fleeing money may find the virtual currency a useful conduit, something odd has been going on in fiat currency alternatives...
Before The Fed stopped its direct money-printing in October 2014, gold and bitcoin were highly correlated, perhaps rightfully reflecting the ebbs and flows of the USD's reserve currency strength (or weakness) as well as various crisis moments. However, as the chart below shows, since the end of QE3, the correlation regime between gold and the virtual currency has entirely flipped - most notably in the last week or two...
Of course, these gold 'prices' merely reflect the machinations of various paper-promise-trading manipulators amid surging physical demand, but still, we noticed one interesting point of inflection.
Since the end of QE3, the relative price of gold has surged relative to bitcoin and now roundtripped to pre-QE3 levels...
Is this another switching moment as alternative currency seekers rotate back to a 'relatively' cheap gold? Or is something else going on here?
* * *
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.
Charts: Bloomberg & Bitcoinwsidom.com
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OMG! SATOSHI WE ARE HERE WITH YOU!!!!
I wonder where it will end up when the government sells their 44,341 bitcoin in tomorrow's auction.
Sure.
Next time let I know before they start buying/selling.
thanks.
Why not the easy explanation, exchange into Bitcoin in one currency 3 days later exchange out of Bitcoin in another currency.
Bitcoin is not a real savings vehicle.
People are using Bitcoin for what it is good at, ignoring borders and capital controls.
ZH'ers made up their mind that Bitcoin was to be a failure 5 years ago. Now they are trying to justify why reality should be wrong and their delusions really should be right.
Yeah, real successful - up to highs around $1200.00, down to lows of $250.00, roughly just off the top of my memory.
The .00001 percenters in the Shitcoin rip off scam are laughing all the way to and from the Shitcoin muppet shearing shed.
Volatility is a bitch, bitchez.
.00001%? Please, you're just too dumb to get this, admit it.
Bitcoin is dead (for the 25th time), long live the Bitcoin
I can either put my money into Bitcoin and hope it keeps going up or I can put my money in Silver which is being manipulated down and is something I can actually see, feel, and show people without the use of electricity. Hmm... tough one.
Proceed with caution and always, ALWAYS ask WHY?
Worrying about electricity disappearing everywhere permanently is not "caution". It's called stupidity.
Careful with those matches. Lots of straw men around.
Pull that Gold/BTC chart back to Bitcoin's inception in 2009 and you'll see a line going almost straight up in favor of Bitcoin. I don't see any reason to doubt the world's growing preference for crypto over PMs. One is useful for buying day to day things and ignoring banks and borders, the other, not so much.
Exactly... nobody is going back to the days where we sit around waiting 10, 20, 30 days for our gold coin payment to show up so our items get shipped. It's just most of the retards here will refuse to admit that digital fiat still had (and has) better transactional utility for obvious reasons over gold and silver for anything other than local purchases. And they're also too dumb to realize that they have helped prop up the gold/silver supression themselves by continuing to use FRN/Visa/Mastercard, etc. Crypto is the best of both worlds, a store of value, more secure than credit cards and superior transactional utility.
i am 100% for digital currencies, so long as they are backed by precious metals. Otherwise, they have similar flaws to paper currencies: the capacity to foster imprudence
Yes I am amazed how people think a PM based system has to deal in trade of actual coins. You can have a digital and fiat currency that is backed by PMs quite easily, so it's not zero sum currency game in which one has the advantage of transactional ease and the other security. I say let everyone have their way. Allow free currency competition and free currency innovation. Pure bitcoin, gold, fiat, hybrid models whatever let the market decide which is best. Still waiting for proposals for a commodity index currency ala Hayek.
If teh physical-gold-card runs on SWIFT backbone, Visa, Mastercard, etc (like Schiff's does) who really controls it? Oh right, teh banksters. Bitcoin is an electronic payment system that does not interface with SWIFT.
At this point BTC is a trade. Nothing else. Good luck to those who who have profitted so far.
~Blythe
That volatility is just what you expect of a thinly traded market. Easy to manipulate, and I've heard there is HFT going on.
Use it to cross a border but make sure you can get out fast. Test small amounts first, because I believe it is easy to buy bitcoin, but hard to cash out. Typical of scams of every kind.
WHY do you think you can only own one asset?
Exactly. Gold and Bitcoin are roughly orthogonal, they move fairly independently from each other. They are both assets that are hard for .gov to control.
Diversification in PMs, and diversification into BTC. Works for me.
WHY do you think you can only own one asset?
Because they are idiots who have spent their whole lives being brainwashed with binary thinking, "either/or" false dilemmas. And they have been taught to identify with one personality type (stereotype) via Hollywood films. The tough guy, the geek, the dumb guy, the popular guy, the crazy guy, etc, etc, etc...
Bingo!
44,000 bitcoin is only $22m... chump change i'da thought.
Yeah... we so dumb with our 1000% profits, should have sank it all in teh silver for a 60% loss.
Ever hear of dollar cost averaging Fonefuckfacestar ?
If you bought a little bitcoin every day over the past year, your return today would be better than most asset classes out there I wager
55% in a week ain't too shabby.
Tulips.
Are you concerned about the massive dumps in BTC without regard to price? I Am.
You can always buy a little gold with your BTC that spiked up so much... I did at $410.
Shh...
you dont seem to get it bro...
Federal Reserve / Bitcoin / Gold
Close correlation is not causation.
But it could be.
ZH readers scared little b1tches getting too comfortable in the gold-paper-gold-paper-gold-paper kondratiev-length-medium-rinse-retardation cycles. Now there's a new kid on teh block and they are worried they might not have teh winning horse here!
i preferred you fonestar over the last year since Bitcoin cratered - silent with a butt-plug in your mouth
do us all a favor and push it back in
Muh boss is a Japansese cryptographer!
Cryptographer, most certainly. Japanese, doubtful.
It's speculation on a dumbass videogame currency with a hairlinetrigger.
And don't post and respond to your own posts like a crazy child. It makes you look like a nutjob.
We is teh fonestar and we w1Ll resp0nd in kind!
You where beat up a lot as a kid he?
You're a liar. I know fonestar. He froze to death last winter after the bitcoin crash, burning bitcoins to stay warm.
http://s24.postimg.org/3x6kpptlx/fonestar.jpg
Look at that sucker go! Straight down into oblivion...
My condolences to fonestar, I hope got warm at least twice.
Look you dumb shit we IS fonestar!
" To the moon, Alice, right to the moon ! "
Fonestar was a God of Shitcoin.
You, sir, are a pale shadow pretender basement dwelling cheeto stained bunghole sucking piece of post industrial holocaust dog vomit resembling a life form.
You sir, are no Fonestar. That guy was a genius intellect, albeit seriously misguided.
He hung himself with a block chain a few years ago.
Pax Requiem.
Ask anyone who fonestar is and tehy will tell you that fonestar is managed by PAL and PAL manages coinhead too you dumb fuck.
so what is PAL? 50 Hertz??
PAL was HAL's younger retarded computer brother - you know - HAL - from Stanley Kubrick's 2001, A Space Odyssey.
And you are a hater , what does it feel to have all that hatred surging through your veins ? It sure can't be healthy ..
Now that's a mining rig! Hope it has the 128k expansion board.
"People are using Bitcoin for what it is good at, ignoring borders and capital controls."
Oh, what's that, folks want to use bitcoin to evade capital controls? Well we'll just juke the price up and down 200% and see if anyone survives the process. Step right up and use bitcoin. Hope you understand the risks!
But, but, but blockchain....
LOL.
Morons.
...we agree. In six years Bitcoin has become unit-for-unit the strongest currency on Earth. So yes, Bitcoin is a terrible currency for "saving".
its true- bitcoin has demonstrated a tremendous amount of robustness and resiliency so far. it has survived a large boom-bust cycle, is being widely used to launder money in the largest economy on earth (china), and is the easiest store of value to transport currently, easily evading currency controls and legal restrictions (at least so far). it has friends on wall street who are planning to use it to profit which means that they are buying off some political figure with money on it's behalf, right now. it really looks like it is here to stay at this point.
if you accept that it is here to stay, now, take a step back and consider again it's distribution method and issuance method. surely it at least can't be any worse than the manipulated paper comex gold market, or the government cabal controlled fiat market, can it?
Added bonus: The NSA gets its very own Central Bank
They wouldn't be able to print more on a whim though, which is a pretty big drawback.
What they can do is use freshly minted USD to buy more and control price moving upwards like stocks, before crashing the market whenever. But that might even attract more people.
Owning Bitcoin clearing houses and front-running the block chains in the clearing houses has already been an established fraud by pioneering small-time grifters.
Imagine the potential scale as it grows and imagine it wasn't imagined before it was launched.
Money is data and the power in data resides in Shadow orgs like the NSA with occultish hardware and software exploits on data.
"Give me control of a cyberspace’s data and I
care not who makes it's software"
— Mayer Amdroid Bender Rothsbot
"Owning Bitcoin clearing houses and front-running the block chains in the clearing houses has already been an established fraud by pioneering small-time grifters."
I see you like to put together words in nonsensical strings.
I too string nonsense with thing together run for fun and stuff and things in land of fancy.
Perhaps you prefer the term 'data falsification'...you know, the life-blood of fiat currencies
http://sputniknews.com/business/20150801/1025289418.html
http://www.pcworld.com/article/2864192/police-suspect-fraud-took-most-of...
Didn't know you were such a fan of fiat
Potato po tat owe
I started saving in bitcoins two and a half years ago. I don't care if it goes up 100% or down 50% per day, since it beats any other asset class in the long term.
Blessed art thou of Satoshi consciousness and may your bunghole be infused by the cryptosium for which we stand.
Will you care when it goes to zero?
I am not concerned at all, at least in the near term. After all, the worlds' hottest financial criminal, Blythe Masters, is all over bitcoin, which pretty much means you're going to be in the money, at least for a nice blow-off.
I'm thinking that the the R & D she's done should be put on line shortly, before due diligence of course.
Blythe said she doesn't care about the bitcoins, just the blockchain. So it won't affect the price or value or usefulness of bitcoins at all; what it sounds like she wants is to use a blockchain for trading stocks, bonds and commodities.
Why not the easy explanation, exchange into Bitcoin in one currency 3 days later exchange out of Bitcoin in another currency.
Bitcoin is not a real savings vehicle.
Why 3 days later? If you're setup properly, you can do it all in a day, within a couple hours maybe.
When Bank of America randomly blocks my card for making a foreign ATM withdrawel I sell bitcoins to a local seller and have the money within 3 minutes.
Stuck for fiat? Bitcoin..everywhdre you are
This is what a real free market looks like.
It ain't free, you dick head.
Muppets are getting sheared to the benefit of the .0001 percenters, same as it ever was.
If you don't own it, physical, it don't exist, and it is manipulated all to rat fuck.
Damn rights it is free. And you're a blockhead who best be sticking to whatever yer 2bits upstairs can buy you, because this ain't it!
"It ain't free, you dick head."
Please describe what a perfectly free market is, and whether you think one has ever existed, and can ever exist.
The future is going to suck for some people.
The physical properties of gold and silver are what make it inferior. It's more difficult to move. border controls, limited access, to prove ownership you literally have to show somebody your stash.
Sorry.
I still own a ton of silver and gold but I'm not delusional and relaize if bitcoin doesn't become the chosen SoV then something like it will.
I can't access my gold that is 10,000 miles away but I can control my coins
Not only that, but advancements in technology make stashes of gold & silver easy to discover from "eyes in teh sky".
The Church of BitCon sacrifices more greedy ignorant sheep.
Pump and dump complete.
See you in six months or more BS rumors.
None of your anti-BTC propaganda videos have had any effect keeping people away from Bitcoin.
How many actually buy bitcoins?
It's owned 95% by the bitcoinfarms and once in a while a nerd buys some and loses money within 2 months.
Nobody sells and then it rises, if 1/10 sells the price crumbles because of lack of buyers.
And it's been proven to be very unsave.
And it attracks people like you, not the stable normal kind.
Lots of people buy Bitcoins.
Um........How would I enter that in Exel?
You've done a disservice to those who supported you early on. Should have left the early designs alone.
You had a solid message, a good brand, and the attention of many.Dumping on other peoples' beliefs is not very Zen
Dwolla is an inconvenient vehicle. You've lost business and loyalty.
This is true. I won't EVER buy any more Silver Shield rounds ever again
Chris you are so full of shit it's untrue , but atleast your stupid BS anti bitcoin vdeos are fucking hilarious !!!
Who cares? Do you think we teh Bitcoiners are only in it for teh monies? Or teh lulz and ideals too?
No, I think you are in it for the pump and dump muppet shearing there, cheerleader boy. Boot fucking the masses one at a time for your own amusement.
Yeah a global currency really needs people to "cheerlead" for it. Don't give a fuck what you (or any other monkey) thinks about Bitcoin....
Then quit getting your vagina all irritated when someone doesn't wanna drink the Shitcoin Koolaid.
You got your opinion, I got mine, and it is still a free country with freedom of speech still being the law of the land.
Lets see who breaks on through to the other side successfully - Shitcoin bag holders, or physical commodity owners.
::dies of dysentary while trying to haul 4 tons of silver around with his oxen::
"I broke another axle!??! Aw shit, ma!"
No dysentary required. Water purification eight different ways from Sunday.
And, you are traveling by Shitcoin magic carpet I presume ?
Lastly, if I had 4 tons of silver, I would liquidate half to purchase more acreage, water rights, livestock, farm and blacksmithing equipment, and the biggest solar array for off grid electricity I could put together.
Plus, a couple of Pelton wheels for hydro electric generation, a shit ton of batteries and sulphuric acid, a couple hundred thousand gallons of diesel fuel, and a mega shit ton of munitions.
See you on the other side of your Shitcoin pump and dump.
Sounds like you're wasting your time on ZH then, phanner!
Better get to tendin' those goats!
Funnily enough, I'm currently writing an O&M plan for an actual pelton wheel. Have you ever even seen one?
Hi - time on Zero Hedge is never wasted. If only 10 people start to use the space between their ears as a result of something I have posted here, then I have had the Martha Stewart moment, and " That - Is A Good Thing. "
There are some way too expensive commercial small scale wheels available on the open market currently.
I would like to invest in some moulds for casting housings and wheels out of bronze for corrosion resistance, and decent output without going large scale.
Small holding pond for head flow, 4 inch pipe penstock reduced to 1 inch for the wheel housing.
Spin a bigger DC alternator for direct feed to a charge controller as standard 12 volts for simplicity.
I like small tech.
As a pm bug myself, I am greatly embaressed by the way you talk.
I will stop buying pm's from now because people like you turn me off . I don't see a need to verbally abuse anyone who don't share your views.
Too lame.
Are you still on 90 day probation or what?
moyyewhon.
This - is Fight Club.
Not " You tried hard, everyone is special, you are a winner, here is your gold star for being 49th out of a field of 50. "
God bless you for preserving the dwindling supply of physical for others who value tangible assets.
I strongly suggest you contact Fonestar, and buy in to Shitcoin to the max.
Good luck, you dumb assed motherfucker.
Thought about mining bitcoin with all that surplus power you will be generating ?
Again you're too dense to see your own "either/or" faulty logic. Bitcoiners are "physical commodity owners" you fool...
Curiosity makes me ask. What is the physical commodity bitcoins are made of?
electrons... same with gold and silver.
I can hold the electrons in the gold and silver in my hands. Can i hold a bitcoin? If so where can I buy a physical bitcoin?
Your inability to define the difference between "real" and "corporeal" puts your mentality somewhere back in teh bronze age. Even Plato was able to deduce that the material world was built on teh unseen.
I ask an easy question and your response is a personal attack. Does it bother you that the answer to my question was "No"? If so, why?
What is the difference between Bitcoin and a Prepaid Visa or Mastercard? The wild swings in value withstanding.
If I buy a bitcoin for say $400 frn, will it be worth that tommorrow? The visa or mastercard will.
Just admit it, Bitcoin is a fiat currency if you insist on calling such. And not much different than existing payment transfer companies. Bitcoin is more a data transfer company than a currency.
Now I'll go back to skull fucking your mom. Boy.
Visa and Mastercard are used by FRN-fanboy traitors. Put them up against teh wall and shoot them all, save one to dig a pit.
Uh, oh... Asking real quesitons of the BitCoinites. This is going to get you called all kinds of names.
can you hold oxygen in your lungs? You can't touch it so it must be worthless... DURRRR......
I gotta admit - you are a persistent little Shitcoin pimping motherfucker.............
Did the Shitcoin machine shit out all of you Shitcoin trolls in one massive dump or did someone clone fonestar's DNA tenfold?
Cloned the ideas he has. It's all about the ideas! I envisige the government operating tens of thousands of currencies, one for each skill, trade and industry, in the future.. probably blockchain based. So I figure it is a great idea to start with just one. http://zhc0.com
15horses1donkey -
Associating the name Zero Hedge with a cryptocurrency is like saying George Washington clear cut cherry orchards and molested children.
Copyright infringement at the least, and insulting to the philosophy of Zero Hedge bitchez.
They could exist, if we needed them to. RF chips or tech as simple as a hotel key could do the job. We just have no need at this point beyond the obvious answer ofputting them on a USB stick.
Electrons, only about as physical as a lightning bolt.
Only as physical as powering the entire planets electrical supply ,,,
There are no bitcoins, you have a private key or password that allows you and only you to send your bitcoin balance to another address.
Think of it as a gigantic database of a bank that anyone can open at accout at by just by downloading an app.
The system is setup so no-one can tamper with it. So it is like a bank account without a bank where your account balance are your bank shares and it behaves like stock that reliably issues new shares. 25 every 10 minutes right now, next year it will be 12.5 so just wait a few years.
Each auction has been taken by basically 1 bidder. Expect the same again.
Tim Draper bought one of the lots.
Dumbest scam since tulips. BTC holders deserve the bags for their heads when their shit is in the toilet.
same as gold, you can hold tulips in your hands
Captain Debtcrash - answer to your question is easy, at the presidential press conference.
" We sheared some muppets. "
44k coins, that is traded in China in an hour and it's the last auction, yawn.
Yeah, Bitcoin is a stable storehouse of value, just like FRN's, the stawk market, credit default swaps, derivatives, US Treasuries, and every other paper electronic bullshit fantasy.
Physical commodities in your possession have value, especially those that keep you alive, or are internationally recognized as store houses of true value for trade and barter based on over 5000 years of historic precedent.
Wake the fuck up people.
People can wake up but being stupid is a terminal condition.
Indeed, anyone that thinks BTC is supposed to be 'stable' this early in its life is truly stupid.
You just proved it to be true.
Strange that you'd think so.
Stranger still you'd say such without explaining why.
"YOU CAN"T HOLD IT!!"
Do you understand what gives gold and silver value? Hint..it's not the fact that you can hold it. It's because it is a decentralized ledger that cannot be tampered with. You own a portion of this distributed ledger. The physical portion is a burden but formerly a necessary one.
If you don't understand why a decentralized ledger that is accessible to all, from anywhere, without the burden of carrying around your claim to the ledger is valuable then you can't be helped.
Fuck shitcoin.
You don't like something, but are completely unable to articulate any reason why.
Thus, you are what we call a "fucking idiot", and are to be ignored.
That's the way the Bitcoin bounces.
Bitcoins going cheap - hurry up hurry up!
lol...catch that falling BitKnife!
what ever happened to that fella fonestar?
Banished to the fires that burn but do not consume for some reason?
fonestar is with you! Right here, right now in teh virtual person!
The only thing better than fake money is fake money that appreciates and depreciates 75% in a week.
Rumor has it that one of the big miners found a massive deposit up North but it's too hard to get to. Once the price of BTC is better than $1000 they can afford to start drilling. Demand is extremely strong for BTC and some are talking "peak BTC" and shit.
Peak bitcoin was programmed to be on day 1. Ever since then, the rate of creation of bitcoins has been a monotonically decreasing function (in red, note log scale):
http://www.mattwhitlock.com/Bitcoin%20Inflation%20logarithmic.png
And back to 410+
Nobody expects the parabolas to hold... it's all a part of much long process of building stable market cap.
Buncha sensationalists around here ><
I remember when people were talking about corrections in the Beanie Baby markets...
And they had physical to back them up...
Of course, when looking at the attributes that gave any of these items value, it becomes quickly apparent that any 'collectors item' comparison, from beanie babies to tulips to pogs, aside from the shape of the market (initially, even those comparisons don't hold up now, over the long term) is simply asinine.
wow bitcoin pumped and dumped, no one has seen that before...
u wont find a more illiquid market than bitcoin, so why should this a surprise. You dont even need to orchestrate anything, all the market needs is a little push
virtu and ny fed...? just lol
still ZH has no concept of how markets operate, incredible
Another of Zerohedge's more ridiculous conspiracy theories. LMAO
When is Walmart going to roll out it's currency?
It has.. See the EBT button on the payment device..
The Yuan's been out for a while. At least since the release of Lethal Weapon 4.
There were people on here saying their buy orders where taking a long time and I was thinking to myself wait until you try to sell.
Let's hope ZH experiences its own hockey stick move up towards comprehension.
red is bad right?
uh high giraffe. How is teh air halfway there?
no, no havent you heard... red is the new "good" BTFD! Now thats a joke!
So I *should not* sell my apple stock and buy bitcoin?
I'm so confused.
http://www.fool.com/investing/general/2015/11/03/apple-inc-stock-massive...
It doesn't matter, your investment in Apple isn't real because you can't hold it in your hand, apparently.
/s
Too bad I lost all my bitcoins in a tragic boating accident.
I tried. The doctor said it's not that simple to get amnesia even if I tried hard. I may have to live with my brainwallet passphrase for the rest of my life.
That would be how it got its nickname "Shit Coin"
If a coin worth FOUR HUNDRED DOLLARS a piece is shit, then what the fuck do we call the dollar?