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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.
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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?
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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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The dollar is a fucking worthless piece of shit. With even more worthless pieces of shit in charge of it and those same people like Bitcoin......Go figure, ruin one go to the next. Good luck with shit coin.
lmao, at least your comment made the slightest semblance of sense before you edited it. Now? Uh. Thumbs up?
lmao, at least your comment made the slightest semblance of sense before you edited it. Now? Uh. Thumbs up?
https://www.youtube.com/watch?v=xUa7ikBHpaI&t=48
winklepocalypse
Bitcoin is olny for the tough guys, so stay away from it or join if you are not a pussy.
Or if you don't mind losing more than half of your "investment" when the next crash comes.
As soon as BitCoin hits $2.34 I'm buying - but just a little as the risk will still be high. Should be within one year.
I'll take that bet.
$1000?
why?
"since the end of QE3, the correlation regime between gold and the virtual currency has entirely flipped"
I don't know much about the bitcoin market but another interesting flip is that unlike gold the downward slams on btc seem to happen during the times when the US markets are open and the chinese markets are snoozing.
I can understand banks and traditiional finance institutions hating Bitcoin but I never understood why everyday working and middle-class folk love to mock it and make fun of it.
Can someone fill me in why people froth at the mouth with hatred over its mention?
pump and dump? we've become skeptics about fad investments.
yeaaah.... it's still up 40% from 3 weeks ago... up 50000% from 5 years ago... who's doing that well in the market?
Of course, ZH'ers love to ignore context in making their 'gotcha' points.
Patience is a virtue essentially nobody posses these days. What a world.
Well good for u, I just dont like it and Im just saying why? I think its good if you can time it right, good luck with that. I would need my back brace for that bucking bronco.
You don't seem to know the difference between money and an investment. For that matter the difference between saving and investing. Or you are not even thinking in those terms.
What do you consider Bitcoin money or an investment? Its price fluctuations are why I wouldnt want it for either at this point. My money comes from work, I trade my work for gold. Gold = Work = Money Bitcoin Not= Work Not= money.. Safe Digital Money does not exist. Digital money gets hacked everyday.
I buy silver for both reasons because its REAL MONEY and at these levels its a great investment.
gold and cash get stolen every day as well so your point is ?
First of all I think everyone is a little tired of fiat money and being fed B.S. People on here for the most part understand what money is and when you have to read a small novel to understand what bitcoin is? "Digital Coin" seems like a contradiction in terms ? Digital coin brings minecraft to mind. Then it gets absolutely crammed down your throat. How many people could create these "digital coins" how rare are they. Someone said to me that they are limited, so dont I get it? Nope I guess I dont because its still digital money very vulnerable in my opinion.
Here is gold: You dig it out of the fucking ground and it represents work? Got it ? Good! Thats all there is to gold.
The answers to your questions are embedded in the code of the coin... open-source and double checakble by the entire world.
I like open source that is good major plus. Makes it less vulnerable. We need a bitcoin class so we can sort it out. I dont know with silver at 15.00 and Bitcoin at 3?? - 4?? one day you can buy a Ferrari the next day a Fiat. Ill be picking away at silver a superior investment, the "real deal" shit load of uses, finite, and precious, it will run out before gold because of demand.
I own silver, but I also own bitcoin. The value of all minted bitcoins is somewhere in the 5 to 6 billion range right now. That's tiny for a currency and is one of the reasons (along with speculation, possible manipulation, etc.) for the big swings.
There are uses for bitcoin today that can save industries billions of dollars per year. So if it doesn't fail and it continues to grow, then the value of the marketplace will continue to rise since the number of coins is capped. At some point, that increased valuation will begin to settle down the spec bubble price discovery that's been going on for these first few years.
That said, I didn't invest a penny in bitcoin until I'd read and digested Satoshi's original white paper and Andreas Antonopolous's book, along with reading up on a lot of the improvements that are being made and the start-ups that are being funded to build out and smooth the rough edges from the network so that it's ready for mass adoption.
It's not there yet, but that's no surprise. Email was around in the 80's on college campuses - it just wasn't very easy to get an account or understand how to use - kind of like the way bitcoin has started out - nerds only.
But over time network protocols were developed to standardize email distribution and end-user applications were built to make sending an email something that's so simple anyone can do it today.
Bitcoin or some other cryptocurrency will get to that point as well, and there's a bunch of VC money working to make that happen right now.
Thanks that makes sense, I like to invest in things I dont have to study about. Simple things. The more complicated it gets, the less I like it. Just remember lots of people in power who should not like Bitcoin, do like it, thats not good in my opinion. Very suspicious and this fact taints it for me. I dont trust any of our leadership, they are all bought, greedy pigs. Anything these crooks are endorsing Im staying away from, except of course gold and silver. Look at how bad the FED fucked things up??? When silver moves up to around 25-30.... Ill get away from it, Till then Im buying and I could be buying silver and nothing else for years. There is not that much left on this planet and few things compare in my mind to the investment potential of raw silver. With silver prices this low everything else in my mind is just garbage, its just that inflated garbage.
As long as the dipshits in power insist on manipulating the price of silver down I consider it a superior investment, where else can you get something that the price is artificially being held down or forced down? They cant hold it down forever just like a buoy in the water. Tell the government to get the fuck off of the PMs and Ill move about the cabin, until then silver is just too good to pass up. FUCK THEM.
Tell our useless government to get the fuck off silver/gold fucking DICKHEADS!
https://en.wikipedia.org/wiki/John_Exter Look at the pyramid, they are making the base, the most valuable part of the pyramid, worth less, BUY IT! Its a very simple strategy that will be a winner in the end. Time is all that is needed. The only place I see Bitcoin fitting on the pyramid is with paper cash or higher. If the current FED has departed from Exter's model they should have an explanation as to why and what model they are using. I would LOVE to hear that explanation.
The lower silver and gold goes the more value is gained as an investor? ITs DIRT CHEAP AND GETTING CHEAPER AND IT WONT GO OUT OF BUSINESS. IT WONT GO TO ZERO, What dont people get about that? Silver and Gold are not Trendy perfect time to get in.
The idea Bitcoin is anything even remotely close to gold is fucking crazy stupid. Gold was made by our planet, not some geek. If one geek could create it, a bunch of geeks could create it. Leaders are temporary
This is definitely the future of currency. Who wouldn't want to own something that loses 30% of it's value in one day on speculation alone.
Exactly what Blythe Masterson wants you to believe!!! You do remember JPM's Commodity Manipulator par excellance?
And another piece of real estate (pick your bubble city) is bought with all cash by someone in China who moved their Yuan through bitcoin and then back into some other currency.
Standard Disclaimer: Genius, I tell you, pure fucking genius.
Please name the exchange that will cash out $1 million in bitcoin in less than a month (or 6).
Gemini, Bitstamp, Coinbase, BItfinex, OKCoin, Huobi, BTCChina......
You obviouly haven't read the fine print and understand how the exchanges work. Huge difference between buying and selling within bitcoin, and "cashing out" large amounts of bitcoin IF YOU DIDN"T DEPOSIT $1 MILLION CASH, FIRST
We are talking here about taking $1million in bitcoin from China, and depositing cash in a bank in another country. Not happening easily or quickly.
Love it or hate it, we're watching a nascent market forming and going through its birthing pains. Unlike other disruptive technologies eg between uber and taxi drivers or napster vs the record industry, thiis one involves the bankers taking a potential kick in the balls and for that alone I am fascinated. If it makes it past $600 over the next few days I'll be stacking up on popcorn.
I don't like the idea of not having a sovereign behind my currency. Too much opportunity for globalist oligarchs to make an effort to have control of a world currency. No thanks. At least a sovereign can, theoretically, take control away from the banks with monetary reform.
Sovereigns are completely captured by globalist oligarchs. Decentalized free market money is the only way to fight them. Bitcoin can't be levered into fractional reserve banking, and it can't be naked shorted. In other words, the protocol is immune to phony warehouse receipts and the cockroaches who create them. You need to lose the statist mentality.
Sovereigns are ultimately accountable to the citizens. The US has a history of overcoming oligarchs in the past; Teddy Roosevelt took on the Robber Barons and its possible for a political system to represent the people. Bernie Sanders plan to break up the Too Big To Fail banks and reinstate Glass-Steagall would be a start.
If you think a fiction is "sovereign" you are nuts.
"I don't like the idea of not having a sovereign behind my currency. Too much opportunity for globalist oligarchs..."
This is so far beyond full retard, it's not even on the planet any more, and is instead rocketing off into galaxies unknown.
A lot of people just crossed a border somewhere.
Yes that is a distinct possibility... and plenty of good old speculation thrown in.. wild west indeed and wonderful to be living during it
Looking at the chart, smacks of manipulation, or some kind of bad news being priced in (none that I'm aware of). No rational person would dump like that if they didn't want to affect the price so they can pick some up at a lower price. The chart looked like this a few times over the summer. Gets slammed, trades in a lower range for a while, and then back up. My guess is whoever was slamming it, was a buyer in that lower range -- just not all at once :)
It smacks of the kind of manipulation you would expect when someone has managed to corner the market. What is to prevent that from happening with Bitcoin, a totally unregulated market?
http://ftalphaville.ft.com/2015/01/16/2091482/how-to-corner-markets-bitc...
What's to prevent that from happening in completely regulated markets. Given the obvious... absolutely nothing.
yeah, chump "whales" shaking out weak hands, whipsawing stupid people who use leverage and taking their wealth :)
people had a whole year to buy in low 200's and would already doubled their holdings, but because they are greedy they get what they deserve, to be rekt over and over until they are liquidated
because they are greedy
You obviously don't see the irony in your statement. YOU are wishing that bitcoin goes up to the thousands, so you can MAKE lots of money. You're the greedy one.
This is also why bitcoin will fail in the long run. It's supposed to be a transactional alternative, yet people are now going into it because they believe it's an INVESTMENT. You will find there's more an more of the type of behaviour that's happened in the past couple days. Just like in the stock market. People will constantly take small gains multiple times rather than wait for "the big score".
new bitcoins are created through solving math problems
https://www.bitcoinmining.com/
solved by hardware proxy {computed, not "solved" imo}
http://www.amazon.com/gp/product/B00RCTIY4G?creativeASIN=B00RCTIY4G&link...
So this is a virtual money tree for a relatively small one time investment?
and my chicks for free?
Except they keep moving the goalposts.
Right now, using the fastest and most efficient dedicated computer chips (ASIC) it takes $200 to $300 worth of electricity to mine one Bitcoin.
Right - this is competition. There needs to be free competition so that the issuers (miners) don't get undue gains out of it. As it is miners have to calculate whether to make the pure-play capital investment or not.
They don't call it shitcoin for nothin'.
Not quite sure why there is so much vitriole on BTC's large volitil today? Just another asset/currency whose value is determined by mutual agreement amongst holders meanwhile coexistent with manipulations by traders. Inequality today is about the difference between complexity and simplicity. Gold is simple - bitcoin is complex. Best to balance representations (Ecclesiastes)
Nothing more than another jinga money pile.
This article is basically the same thing as an update on the S&P 500 stock market index. Bitcoin shitcoin, all same, all same.
Nothing like going to sleep and waking up in the morning to discover that your 'currency' is worth 30% less! Until BitCoin solves this, it will just be a two-bit phony currency.
you mean gained over 100% in a matter of days.. depends when you buy/sell etc... how's that $1800 gold doing?
How's that $1,200 bitcoin doing?
It's impossible to "solve" the instability. There's absolutely nothing backing bitcoin and there will never be anything backing bitcoin, so it will ALWAYS be unstable.
And now, it's become a spectulative hold, where people are holding on to it EXPECTING to make money. It's supposed to be a transactional medium, and it was in the beginning. It's turned into todays version of tulip bulbs.
Hope you all sold on the run up... I was selling high $300's into $500 and await the deflate to rinse repeat... you all here to make some money right??
place your bets :)
If I feel like placing a bet I'll go to the track. More fun.
Can't wait to see who picked up what in the U.S. Marshals Service Bitcoin Sale this morning. Let's see if the parties involved in this giant pump-and-dump / auction price manipulation do a better job hiding their trails than those involved in last auctions.
http://www.coindesk.com/secretive-mining-firm-revealed-as-possible-us-ma...
Of course, the U.S. Marshals Service does reserve the right to pull the sale. The amount of market manipulation in the last two days around Bitcoin could warrant a delay in the sale.
http://www.usmarshals.gov/news/chron/2015/100515.htm
That dosn't look like real market. 100% up, 50% down in 3 days. More like some fake asset.
Was hoping to see gold and silver at triple their value by now, I thnk silver is undervalued simply due to industrial demand alone.
Sorry to burst your bubble ZH ( pun intended) but what's been going on, is that some "mmm" ponzi scheme started using btc. It's not about avoiding capital controls... yet that is.
There will always be people willing to buy Bitcoin in one place and then take it out in another place with a 20% loss in value.
There called drug traffickers, money launders, tax evaders, and black market currency dealers.
So bit coin is subject to constant defationary preasure.