Submitted by Tyler Durden: It was inevitable that a few short days after Wall Street lovingly embraced Bitcoin as their own, with analysts from Bank of America, Citigroup and
others, not to mention the clueless momentum-chasing, peanut gallery
vocally flip-flopping on the "currency" after hating it at $200 only to
love it at $1200 that Bitcoin... would promptly crash. And crash it did: overnight, following previously reported news that China's Baidu would follow the PBOC in halting acceptance of
Bitcoin payment, Bitcoin tumbled from a recent high of $1155 to an
almost electronically destined "half-off" touching $576 hours ago,
exactly 50% lower, on very heave volume, before a dead cat bounce
levitated the currency back to the $800 range, where it may or may not
stay much longer, especially if all those who jumped on the bandwagon at
over $1000 on "get rich quick" hopes and dreams, only to see massive
losses in their P&Ls decide they have had enough.
Which incidentally, like gold, is to be expected when one treats what
is explicitly as a currency on its own merits in a world of dying fiat -
with the appropriate much required patience - instead of as an asset,
with delusions of grandure that some greater fool will pay more for it
tomorrow than it is worth today. Sadly, in a world of HFT trading,
patience is perhaps the most valuable commodity.As for Bitcoin, while the bubble may or may not have burst, and is for now kept together with the help of the Winklevoss bros bid, all it would take is for another very vocal institutiona rejection be it in China or domestically, where its "honeypot" features are no longer of use to the Fed or other authorities, for the euphoria to disappear as quickly as it came...
Two day chart, showing the epic move from $1155 to $576 in hours:
And longer term chart showing the overnight action in its full glory:
Source
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Bitcoin less than oz of Palladium now
War on crypto-currencies? How about hot speculation by traders and the Winklevoss Twins?
http://www.youtube.com/watch?v=Ujl9Qe...
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