Another Bubble Bursts - Bitcoin China Crashes Over 30%

Tyler Durden's picture

First it was Chinese stocks, then Chinese real estate (twice), then Chinese commodities (twice), and now Chinese Bitcoin's bubble has burst as a massive short squeeze on the offshore Yuan combined with comments on 'virtual' capital controls has sparked a bloodbath in the cryptocurrency from 8,896 yuan to 6,101 yuan in the last few hours...a 31% collapse.

Despute the collapse - BTC China is only back at 2 week lows...


For those chasers, don't say we did not warn you, as we noted previously, for those buying into bitcoin here on the momentum, most of which originates in China, we urge readers to be cautious as by now the PBOC has certainly noticed that the digital currency remains one of the final, and most successful, means of bypassing capital controls in China. Should Beijing mandate that bitcoin no longer be a means to illegally transfer capital offshore, there is risk of a dramatic, and sharp, drop in its price.

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chumbawamba's picture

Jesus Christ, the Chinese seem bubble-stupider than any investor class out there.

I am Chumbawamba.

Rich Stoehner's picture

Shit, just as I was logging into overstock

Max Hunter's picture

Someone say "fire drill"... 

WTFRLY's picture

hahahaha, wait till the whole thing goes under. it's a trap.

Heavy's picture

world's got a zombie bank bubble

For Ages We Shall Reign's picture

Disgusting muslim scumbawumba....

Haus-Targaryen's picture

Where is that egregious BTC fan boy? 

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Haus-Targaryen Jan 5, 2017 10:07 AM

Oh NO!!

I don't always take financial advice from gumps who plan their entire future around the weeks surrounding an economic collapse. But when I do, I head over to comment section!

wee-weed up's picture

You think that's bad? Ha! Just wait till the "poof - it's gone" time arrives... and it will!

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) wee-weed up Jan 5, 2017 10:18 AM

Do you want to give me any time frames for that happening? Because I plan to be in Bitcoin for the next 5, 10, 15 years..

wee-weed up's picture

Two words... GOLD, SILVER... Then you don't have to worry about time.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) wee-weed up Jan 5, 2017 10:31 AM

How long were you planning on SHTFantasy again? 1 year? 2 years? 5 years? And the rest of the world is all going to be SHTFing with you right John Rambo?

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Draybin Deffercon III Jan 5, 2017 12:01 PM

Now how did I know that you'd be here going spastic over Bitcoin?

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) LowerSlowerDelaware_LSD Jan 5, 2017 12:29 PM

Becacuse I'm permaspastic over Bitcoin?

Crash Overide's picture

I lost $20 on the BTC crash this morning... but when I did crawl out of bed I did see the recent Silver I bought still on my desk, then I made coffee. 

CJgipper's picture

False.  The US confiscated privately held gold in teh 1930's.  That's exactly what China is threatening here with bitcoin.

kochevnik's picture

How does China confiscate a number in one's head?

jmack's picture

They put your head in a cage, with a hungry rat...winston

kochevnik's picture

>Then you don't have to worry about time.

Just the knock at the door....

jcaz's picture

Good plan. 

You'll do well.

You're the prettiest girl at the ball.

Your mommy told you so.....

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) jcaz Jan 5, 2017 10:36 AM

I will be buying some more Bitcoin on payday (like I always do) and now I will be paying a little less. Win win for me.

K_BX's picture

your roll your decision. gl - you'll need it

MalteseFalcon's picture

Bitcoin is plenty volatile.

Is there a triple levered paper bitcoin fund?

I want to invest in it and become a billionaire by the end of the week.

Then all my opinions about foreign and social policy will matter.

I may also buy an NBA team so I have something to do with my time.

Grave's picture

dear idiots, zoom out and take a look at this

pullbacks/shakeouts are normal and will happen every time bitcoin rises too fast

and for those gambling on fomo with leveraged trading, take a look at this dumbass getting rekt for 10m :p

you can make tons on swings like this, and you can lose tons

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) HockeyFool Jan 5, 2017 10:37 AM

Might want to wait a few days but yes, BTFD.

Bay of Pigs's picture

No, you said buy, buy and buy all the was to $50K.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Bay of Pigs Jan 5, 2017 12:26 PM

I said it was going straight up to $50K? When did I say that?

800409523's picture

There is no way the invention of the decade lands on a rubbish heap. 53% of upstream web traffic in the US is from decentralised, illegal, file sharing which is similar to bitcoin's architecture. How did banning illegal file sharing work for the authosities? The real mind blowing thing about bitcoin is actually something called the 'proof of work', in a nutshell any attacker would need the computing power of over 500 Googles and access to an electricity supply greater than that of Sri Lanka. You can make it difficult, but it is IMPOSSIBLE to ban a protocol. Bitcoin is a protocol. 

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) 800409523 Jan 5, 2017 11:09 AM

These people are far too stupid to understand protocols. I used to wonder if they were capable of understanding Bitcoin at all? I could see they were not. Then I wondered if they could understand any of the concepts involved in Bitcoin network? And I could see they were not. Now I don't believe they are even capable of doing grade 3 level math. Ie, "960 is a bigger number than 16".

DirkDiggler11's picture

I wonder in the end which will buy you more groceries at the store DD, your ShitCoins or your EBT card ???

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) DirkDiggler11 Jan 5, 2017 11:30 AM

Face it, most of you are mental invalids. You could never hope to understand Bitcoin, P2P technology, or much of anything else. You aren't wanted on the team and I wonder why you are on the "not real" Internet at all?

I think your guys understanding of gold probably goes as deep as "duhh I feels dis. dis feels heavy durrr..."

cheech_wizard's picture

Sure, just because I can write assembly code to flip a single bit in a translation lookaside buffer array in a microprocessor that obviously makes me a mental invalid...

Standard Disclaimer: 1) Fuck You. and 2) Odds are, regardless of what piece of technology you are typing your daily screeds on, my fingerprint is quite possibly in there somewhere. I guess I'll get back to working on that virtual enema program. Will you beta test it for me?


Draybin Deffercon III's picture
Draybin Deffercon III (not verified) cheech_wizard Jan 5, 2017 12:16 PM

Oh yeah sure, lets see your github.. or maybe just the Wiki you brought up to copy/paste BS?

kochevnik's picture

Joe Six Pack prefers Jew debt notes he calls money

Crash Overide's picture

I understand it, I also understand that you are kind of a prick.

We get it, you like BTC... you're trolling is worse than MDB.



Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Crash Overide Jan 5, 2017 11:37 AM

Why shouldn't I be a prick here? I was attacked from 2011 on by this site's mentally deficient users. Now everything I said has turned out to be correct. And they are still trying to come up with lame, pathetic excuses on why they *should have been* right (in some alternate universe). Don't you hate it when reality diverges from your delusions?

therover's picture

Protocols come and go. They are re-named, spun, disintigrated, re-formed, made better, etc. That's how techology works.

Gold is Gold is Gold. Never hear any other name for gold but GOLD.

Said it in a previous thread. Look at the last time Bitcoin was even with gold. It tanked. It's gonna tank again...and again..and again. 

If you are smart enough to cash out at the tops and buy tangible assets with the profits good for you. If you plan on sticking in that thing to watch it go to the moon, it may go the complete opposite way. 

All fiat, crypto or whatever the fuck you want to call the currency ends up at zero. Proven fact. 

If you want to believe a man made, computer mined crypto currency has a finite amount to be mined good luck with that. 

Gold is now on the rise...are the smart ones cashing out and buying the TRUE money ? Bet a lot of Chinese holders of bitcoin are right now. 


Draybin Deffercon III's picture
Draybin Deffercon III (not verified) therover Jan 5, 2017 11:33 AM

Protocols do not "come and go". Just look at NetBIOS, telnet, gopher, SMB, etc, etc, etc.. yeah they're old and they suck. But they're still in use all around the world.

crazytechnician's picture

Protocols come and go - like TCP/IP you mean ?

kochevnik's picture

>Gold is gold

Useless tautology preferred by police who have nothing noteworthy to say

Is IS is!

auricle's picture

Yah, but what are the premiums at the bitcoin exchanges. /s

auricle's picture

I wonder where all this bitcoin money will be flowing? Gold/Silver? 

cheech_wizard's picture

I was wondering how long it would take you from the appearance of the article until your first bloviation.

Article posted - 9:42

First response - 10:07

Standard Disclaimer: 25 minutes? Go grab yourself a Red Bull.

UndergroundPost's picture

Just the first of many coming "bursts" of bitcoin that will demonstrate again (and again and again) that any cryptocurrency (ie code) that can be regulated by central banking alchemists is doomed. Bubbles will be bubbles.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) UndergroundPost Jan 5, 2017 10:10 AM

How is this a sign that Bitcoin "can be regulated"? Do any of you people even think for 5s before posting? People sell BTC when they want without regulation as it should be.

Vlad the Inhaler's picture

Hey, this is not a crash, it's a "crash".  Yesterday I wrote that I would not have to wait long for the next crash, guess I was right.

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Vlad the Inhaler Jan 5, 2017 10:17 AM

Pullback, a well-earned one.