Cryptocurrency Carnage - Bitcoin Trades Below $2200, Ether Tumbles Below $200

Tyler Durden's picture

The ten largest cryptocurrencies (by market cap) are all getting hammered once again today as the August 1st deadline for Bitcoin's 'civil war' looms ever closer.

As Bloomberg reports, it’s time for bitcoin traders to batten down the hatches.

The notoriously volatile cryptocurrency, whose 160 percent surge this year has captivated everyone from Wall Street bankers to Chinese grandmothers, could be headed for one of its most turbulent stretches yet.

 

Blame the bitcoin civil war. After two years of largely behind-the-scenes bickering, rival factions of computer whizzes who play key roles in bitcoin’s upkeep are poised to adopt two competing software updates at the end of the month. That has raised the possibility that bitcoin will split in two, an unprecedented event that would send shockwaves through the $41 billion market.

 

While both sides have big incentives to reach a consensus, bitcoin’s lack of a central authority has made compromise difficult. Even professional traders who’ve followed the dispute’s twists and turns aren’t sure how it will all pan out. Their advice: brace for volatility and be ready to act fast once a clear outcome emerges.

 

“It’s a high-stakes game of chicken,” said Arthur Hayes, a former market maker at Citigroup Inc. who now runs BitMEX, a bitcoin derivatives venue in Hong Kong. “If you’re a trader, there’s a lot of uncertainty as to what happens. Once there’s a definitive signal about what will be done, the price could move very quickly.”

All the largest market cap coins are getting slammed...

Source: Cryptocompare.com

Once again it is the so-called 'civil war' that is weighing on the entire virtual currency space as we noted previously, behind the conflict is an ideological split about bitcoin's rightful identity...

Some have suggested this drop may also be exaggerated by India's decision to tax Bitcoin like gold.

it is being reported that taxes are the probable outcome from this enquiry which will render the cryptocurrency legal, but also affect its growth as a decentralized alternative currency.

 

It seems likely that the regulatory regime that comes in to monitor Bitcoin and its affiliated digital currencies will fall under the Securities and Exchange Board of India (SEBI).

 

This board will then hope to treat digital currencies much like gold; trading it on registered exchanges and thus promoting a formal tax.

 

This will also allow the regulators to keep tabs on the transactions in order to stop nefarious uses such as money laundering, terror funding, and drug trafficking.

Bitcoin is back below $2000 - its lowest since mid June..

 

And Ethereum is dumping back below $200...

Source: Cryptocompare.com

Below is an outline of the main events that could unify or divide bitcoin:

By July 21: SegWit2x software is released and supporters begin using it.

July 21 to July 31: The community monitors how many miners deploy SegWit2x:

If more than 80 percent deploy it consistently, that should signal community-wide adoption of SegWit and the avoidance of a split, at least for now.

 

But if a majority do not deploy, expect anxiety within the community to grow as the focus shifts to the Aug. 1 deadline.

Aug. 1: UASF is deployed by its supporters, who begin checking if bitcoin transactions are compliant with SegWit.

If a majority of miners still do not deploy SegWit2x or otherwise accept SegWit, and if UASF supporters do not back down, then two versions of bitcoin’s blockchain could come into existence: a UASF-backed one where only SegWit transactions are recognized, and another where all trades -- SegWit and non-SegWit -- are recognized.

 

If a split occurs, bitcoin will likely begin existing on both blockchains in parallel, resulting in two versions of the cryptocurrency. Expect traders to quickly re-price the value of both, likely leading to massive volatility.

“It’s moderates versus extremists,” said Atlanta-based Stephen Pair, chief executive officer of BitPay, one of the world’s largest bitcoin wallets. “It depends on how much a person values the majority of people staying on one chain at least for a little while longer, versus splitting and allowing each pursuing their own vision for scaling.”

As a reminder, investing legend Michgael Novogratz recently noted, that he’s looking to add more ether if it falls between $200 and $150... and more bitcoin if it falls to $2,000.

 

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aloha_snakbar's picture

My offer still stands to all Bitcoin holders... get out while you still can, the end is near, BTC will be going to <$1.00 in six months. I will give ALL of you $1.00 for each Bitcoin...

Looney's picture

 

BitCunt is a good name for a crypto-currency.  ;-)

Looney

aloha_snakbar's picture

That is good...also maybe ClitCoin for prostitutes...

CPL's picture
  • BananaCoin for Banana producers.
  • CoffeeCoin for Coffee commodities
  • BeerCoin for Beer makers
  • PotCoin for pot growers
  • JewCoin for trading sex and menial task labour slaves
  • etc.

Then trade the commodity bridged by BTC to enable trading cutting out the fiat commodity dealers and middle men.  Render yearly sets for the commodity to reflect the quantity of the product at the time in a prerun to reflect inventory of a commodity.  If anyone wants to go check out how that works.  Payu Harris of Lakota tribe first nations has an operating model in the Lakota nation.

Creepy_Azz_Crackaah's picture

PLEASE!!! The digital 1s and 0s "backing" the hundreds of digital "currencies" are still worth the same. Still as "valuable" as they ever were.

Now where did I hide my tulip bulbs?...

Mr. Universe's picture

I have a stock of black tulips just waiting to be unleashed on an unsuspecting market.

FrozenGoodz's picture

SegWit2x: our knight n shining armor :-)

1400-1800 I'm a buyer

Hurry up and get the FUD overwith Aug 1

BaBaBouy's picture

My Bitcoinz are getting Wet ...

Raffie's picture

When BTC springs up before Aug 1st I'll convert then to LTC.

LTC is looking great and it is odd MIT Aug 1st has a big to do for LTC.

I see the  'Chicken Littles' are here in full swing today.... THE END OF ALL CRYPTOS ARE HERE!!!!

*eyeroll*

 

Grave's picture

there is no civil war

conwit2x is just another pathetic hostile takeover attempt by banksters, all previous attempts failed miserably, just another attack on bitcoin network, including year long spam attack which cost them tens of millions, if not hundreds
(in collusion with some idiot miner cheaters mining empty blocks)

so far:
1. bankster fuckers ignored bitcoin - done
2. bankster fuckers laughed at bitcoin - done
3. bankster fuckers are fighting bitcoin - in progress
4. bitcoin wins - incoming

they tried everything, hostile takeovers, forking into shitty alt versions like reunbullshitted1, extortion, blackmail, bribery, market manipulation, ddos attacks, spam attacks, sibyl attacks, trojan bundling major protocol changes without network consensus, over-pumping certain shitcoins as "new bitcoin" rofl
all fail fail fail

miners should stfu or they will get fired for not providing the service they are paid for.

they had year to activate segwit, they did not
so they failed and the two other parties (developers/users) are going to uasf

if miners fight them, get rekt ver/wu/etc fuckers haha
(so now they hastily scramble to sneak in their shitty bankster sponsored trojan conwit2x bundle before uasf hammer hits)

Sudden Debt's picture

Bitcoin is in a downtrend and will retrace the spike that it made this year.

What goes up must go down.

The average drop will go down to 1200 dollars, and from 1350 I'm going to start buying in parts.

 

Most lemmings didn't catch the spike and even at 2200 they won't sell because they can't.

To many got in about 2800... so sad... and they'll ride it down.

I'm in at 1350 and in about 2 years, it will go back to 2000 which is a nice profit for me. And if some looney's push it before that, so be it. 

 

You should have  had an exit price that made sense. 3000 was great if you got in at 2K

If you got in at 2800... you're a freaking idiot who bought high and who will sell low.

JustUsChickensHere's picture

If you look at the 1 week chart, it is simply a correction from the most recent upward blip - not a downtrend. That said, the correction could overshoot.

If it does overshoot a small amount that is a buy signal.  There remains a risk that this is an actual trend reversal, but that will take many months to become visible and I think is is not likely yet.

The chart using Bitstamp is here: https://bitcoinwisdom.com/markets/bitstamp/btcusd

You need to click on the 1W timeframe and view on log scale to see the trend line.

 

If the miners activate SegWit2x, the real 'war' is scheduled for about November when the 2X part kicks in - a hard fork in the maximum block size. Anyne that is not mining when the schedule for that locks in on the 21st is insane if they do not prepare by switching to the SegWit2X client.

Doing so protects them no matter which 'side' wins the mining fork battle. And that client is exactly the same code as the Core 0.14.1 (latest) client with a number of bug fixes for SegWit and the trivial code to transition to 2X.

 

Stackers's picture

Drat, I'm only up 1500% on Ether instead of 3,000 %

JethroBodien's picture

I love it.  Where is tmosely who bought into Ether at 392.  People stepping on and falling over each other trying to get out.

The question is do people have the stomach to hold.  Life savings evaporating before their eyes.

Down vote me all you want.  I have no sympathy for anyone who think thay can make their fortune in such a manner.

 

tmosley's picture

>where is tmosley

You should really pay attention. I've been here all day.

I also said that ether had gaps to fill all the way down to $90. I bought a tiny bit near the top. Hit my second lowball bid, and will buy more a bit above my target at $90.

>I have no sympathy

Poverty stricken silverbugs usually can't afford such luxuries. The rest of us can see the potential, and can see that there is plenty of money to be made frontrunning the banksters into the ecosystem.

JethroBodien's picture

Your first mistake is thinking you can apply some rational to something that is completly irrational.  Thinking you can predict where Ethereum is going is a fools errand.

 

Raffie's picture

So the trader who made $200mil in Ethereum got lucky????

JethroBodien's picture

What about the poor souls who lost 200 million.... there are far more of those than winners.

 

Raffie's picture

So you making it sound like ONLY cryptos this has ever happened to and never in the stawk mockets.

 

 

Zero_Ledge's picture

The stock market analogy to bitcoin/etc is quite apt, especially when reflecting on the dot-com boom.  Back then anyone could start a company with a .com name and issue stock to the public.  This is exactly the problem with bitcoin/ether/etc/etc/etc/etc/etc/etc.

A few will probably survive but it will be a total bloodbath for everyone else. I hope you are one of the lucky ones, but the odds are very much stacked against you.  Even if blockchain really is super-duper, what happens when Visa ICO's V-coin?

tmosley's picture

>what happens when Visa ICO's V-coin

If it has cool new tech that proves to be highly useful and can't be manipulated by the issuer, it will probably do well.

If it doesn't, it won't.

You goldbugs don't get it. Cryptos rise and fall based on the MARKET, not based on the whim of some needledick trader colluding with his pals on Bloomberg terminal chatrooms. This is an enormous and immediate improvement over gold and silver. The features of the cryptos also mean it will do very, very well in the case of a currency collapse, which was the saving grace of gold and silver. But the crown has been usurped. It won't be returned, no matter how magical your thinking.

Zero_Ledge's picture

"You goldbugs don't get it. Cryptos rise and fall based on the MARKET, not based on the whim of some needledick trader colluding with his pals on Bloomberg terminal chatrooms."

No collusion in cryptos, eh?  I've seen plenty of delusional statements about cryptos, but I think that one takes the cake.

 

Grave's picture

those are the wallstreet retards who got massively dumped on lmao, got sidelined into a shitcoin instead of bitcoin
while bitcoin whales made a killing on dumping right in their stupid faces rofl
genius move

Sudden Debt's picture

No smart, he fleeced the lemmings

tmosley's picture

Please tell that to the idiots claiming it is going to zero next Thursday where it will stay for all eternity for some reason.

LoneStarHog's picture

How many EYEBALLS did you count in 1998/1999?

American Psycho's picture

I told Mrs. American Psycho that bitcoin is crashing.  Her response, "the silver is still here."  She has been well trained. 

HungryPorkChop's picture

Yes everyone Bitzcoin is tulip bubbles!  Stay awayz from my Bitzcoin bitchez...  Remember it's a bubble and vaporware!  Go buyz some coffee beans or something which I heard will go up by 5,000,000%. Remeber only crazy dwarves that drive mopeds and eat corn chowder buyz bitcoin.  Now hurryz back to your stawk' market and shiny metallics, pleazze!

Raffie's picture

The Central banks warn people do not buy Bitcoin because it is not backed by the Central banks.

MalteseFalcon's picture

Which one of you bitcoin fan bois foresaw exchanges going down, or state intervention or price movements more volatile than silver or dozens of new competitors emerging or the "civil war" over bitcoin?

Not one of you foresaw any of this and you haven't the slightest idea what is around the next corner.

You have absolutely no idea of the risk with these currencies.

Curiously_Crazy's picture

Meh - you really ought not to use such blanket statements.

I got in when they were under $1 mining on a shitty old CPU, then GPU, then multiple GPU's, then ASIC's. So I've been around a bit.

The only ones who didn't predict such volatility are the noobs (ie generally those who started investing in the past few years - although personally to me anyone who got in at over $100 is a noob). A great deal of people have seen BTC go from $1 to 20 cents. From $29 to $8. From $200 to $80 and on and on and on. It's nothing new, and nothing suprising. Your statement about having no idea about the risk is misinformed at best, and it's getting tiresome explaining this *every single time* there is a downward trend.

MalteseFalcon's picture

People who got in early have no worries about volatility.

They make up about .0000001% of the people engaged with bitcoin.

They were also purely lucky, like lottery winners.

Want to worry about volatility?

Buy more at current prices.

tmosley's picture

Uhh, bitcoin exchanges are fucking NOTORIOUS for going down, and sometimes running off with people's coins.

State intervention is well known, as many have tried it and all have failed. All the do is drive the price up by imposing capital controls.

Volatility is a natural part of any adoption curve, and is different from risk.

Competition is a MAJOR upside, not a downside. No-one is telling you to buy a specific coin and hold it for 100 years.

>Not one of you foresaw any of this

Hahahaha. Check my post history. I told everyone there were gaps to be filled, still one left to go at around $90. My last buy in is around that level.

>You have absolutely no idea of the risk with these currencies.

TBH, you sound like a bitter old man. Pissed he missed the boat, and so he prays for it to sink. Disgusting.

MalteseFalcon's picture

Uhh, bitcoin exchanges are fucking NOTORIOUS for going down, and sometimes running off with people's coins.

So avoid exchanges or chance losing everything?  I wonder if people who lost everything to an exchange think bitcoin is the greatest?

State intervention is well known, as many have tried it and all have failed. All the do is drive the price up by imposing capital controls.

You have absolutely no idea what the state has planned or what the state has already done.  Some state actors are saying crypto-currencies will destroy economies.  If the state processes and agrees with this, expect a greater effort at co-opting cryptocurrencies.  In any case only a fool would think the state is done with cryptocurrencies.

Volatility is a natural part of any adoption curve, and is different from risk.

By saying "adoption curve" you are assuming that bitcoin is still in the adoption phase and the underlying trend is up.  With new competitors coming on, you have no idea if bitcoin is Google or Lycos.

Competition is a MAJOR upside, not a downside. No-one is telling you to buy a specific coin and hold it for 100 years.

100 years, you could lose your holdings in seconds.  Etherium flash crash, anyone?

>Not one of you foresaw any of this

Hahahaha. Check my post history. I told everyone there were gaps to be filled, still one left to go at around $90. My last buy in is around that level.

Given the short history of the concept there are unknown unknowns.  But if chart analysis keeps you warm at night, knock yourself out.

>You have absolutely no idea of the risk with these currencies.

TBH, you sound like a bitter old man. Pissed he missed the boat, and so he prays for it to sink. Disgusting.

Don't care about the boat.  Like most readers here I was aware of bitcoin quite early.  Didn't buy the concept then, don't buy it now.  I see it as an opening gambit to a completely cash-free controlled economy and the bubble aspect has been used to draw attention to it.  This does anger me, and I see you as an unwitting pimp for a controlled economy.  Bitcoin might have some value if the price were more stable.  Bitcoin has value as a transaction medium.  But speculators continue to distort the price making that nearly impossible.

Speaking of pimps and speculators, weren't you pimping silver at $50?

What were you up to in the mid-90s?  Beanie Babies?

tmosley's picture

Probably up your ass, next to the gold.

Hope you got the rounded edge taels.

aloha_snakbar's picture

Actually, some type of PotCoin is a good idea, and I say that ONLY because due to the .gov laws on pot, banks/credit cards, etc wont go near pot dispensaries or MedMar shops...

bamawatson's picture

honeypot coin
no one knows who satisoshi is/was; that would trouble me; one can easily believe it is a . gov honey pot; or not; they are free to choose.

FrozenGoodz's picture

A gov creating something decentralized? 

Hehe

TuPhat's picture

decentralized, you say, Hehe

CPL's picture

Yes, all governments want a completely transparent type of money that anyone can track all of their spending in a completely open and public fashion.  Governments are so well known for their regulation of spending and transparency.  Oh wait...they aren't. 

 

And anyone, anytime and anywhere in any language can make a crypto coin, the source code and all the bells and whistles are freely available for anyone to download and use.  There are no shortages of cellphones to mine on.  There are no shortages of cheap mining equipment to mine coins.  It's all appliances and there are tonnes of instructions that anyone can follow for free to do it.  Hence the reason there are around 1000 crypto's out there. 

And there is actually already a PotCoin run by the goofs and weirdos over at 420chan.org/NORML. 

They are still however trying to figure out the economic principals on how a PotCoin is used by selling weed by weight to fix the price of their coin to the small handful of growers operating with PotCoin.  If they wanted to fix it, they fix the price of a single PotCoin to an ounce of weed measured against BTC to re-enforce the transaction price.  The can prerun a series (potCoin series A...B...C) based on supply and the price, or on the variety of pot.  PotCoin Sativa Series A.

Literally the Crypto can have business rules built into it to reflect true market space dynamics.  This isn't rocket science and the commodities producers will actually KNOW what is happening in their market space just by looking at the currency the commodity would trade in, instead of looking at stale and shitty/false metrics released by the governments.  The point is, no one fucking knows what the economy is actually doing, because they are all full of shit.  Stop pretend altruism exists.  It doesn't, that's why laws exist and rules exist.

If commodity producers want to make a fortune and actually get paid well for their products while cutting out ten layers of middle men.  They gotta get together and circle their own wagons to defend their price action.  If they hold their own currency by mutual agreement on pricing, they can all do very well and it would make it a lot easier to figure out the number involved in the fucked up mess a small handful of retards left everyone.  For that, here's the mantra to recite:

Die Janet Yellen, die.

Die Lael Brainard, die.

Die Gary Cohen, die.

Die Jamie Diamond, die.

Hitler did nothing wrong.

Oh, if the south wants to be free again.  TobaccoCoin...wouldn't that completely fuck with the ATF if they and first nations started trading only in Crypto data for tabacco.  Think of it like sticking it back in the jew after years of them fucking with everyone financially.

kc_kilo's picture

Talked to my local store, they now have a atm in the shop, no BTC,  yet. All the pot penny stocks have crashed also. Eventually a pot coin will be made, imagine a system that could link growers/distributors/users since it is one of the last cash only businessess.

lesterbegood's picture

What about BubbleCoin for bubbles?

zagzigga's picture

You know what, they do purchase bitcoins. Anonymous, helps to park cash without any snooping, so why not?

38BWD22's picture

 

 

But these kinds of drops are normal for BTC.  As long as they do not screw up the August 1 implementation of changes, this is probably a good BUYING opportunity at around $2200.  In a few days I will be in a city where I can buy.

ounce.me  <== a nice widget for BTC and other prices.

Jubal Early's picture

These movements down as supposedly the world is "catching on to crypto's" are not "normal drops".

What we have is a collision on the block-chain autobahn.  The block chain Stau keeps backing up and clogging all the offramps and onramps (exchanges).  Meanwhile whoever is in control of BTC is busy redesigning and rebuilding the autobahn while there is a growing traffic jam on it.  Good luck with that.

Raffie's picture

move your BTC into LTC.

I used Exodus wallet and it works real good for converting cryptos.

Don;t forget Pillar Wallet is tonight 12am PST July 15th. this looks to be a great ICO.

3LockBox's picture

Move your BTC to LTC but wait your need BTC to buy antashares and take it of your Trezor and open your Exodus wallet and be sure to....

I mean fuck what a pain in the ass for an idea that is already past its prime not to mention the IRS keeping tabs to fuck you from behind when you make a mistake.

And don't fool yourselves the bankers/financers are behind each and everyone of these virtual currencies.

Satoshi Nakomoshamajishi or whatever the fuck the name he goes by is probably Jamie freaking Diamond or Lloyd Blankenfein!

Raffie's picture

All that gold/silver you got in hand has micro nanobots that transmit your location to satellites and beam the location to the alphabet government groups.

Good luck hiding your metals from the government when they ban all PM.

kc_kilo's picture

LTC is really sticking in the 40's now. Very interesting, it is the most stable of the top 5 coins. I dont know why a big brother little brother system develops but it is def a long term hold at 40 bucks. Best trade was buying at 25 and selling at 50 like most people already did....  sucks being late to the party