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Bitcoin sinks below $7000
- deleted 9y ago[deleted]
- gigatexal 9y agoWow. The fire sale keeps happening.
- diab0lic 9y agoIt is pretty incredible how resilient BTC has been to panic selling, it has definitely been trending downward at a high rate but I would have bet that a panic sell-off would have occurred before it reached these prices. There is still a reasonable inflow of money, from the looks of it -- and this is coming from a serious skeptic.
- adjkant 9y agoI think the bots are making a big difference in keeping demand from crushing minimums, always willing to trade on short-term timeframes.
- beberlei 9y agoI am thinking the same, there is enough up and down that arbitrage / day trading bitcoins could make you a lot of money. I find it interesting that always around the full thousands there are sudden immediate pushbacks, for example when it dipped below 8000 several days ago it was pushed back to 9000. same happened at 10000 back to 12000.
- diab0lic 9y agoI figured it was either that or people who are expecting this to be their chance to get in at a "good" price.
- adventured 9y agoIt has lost ~$200 billion in value in under two months. Resilient is the last thing BTC should be called. Fragile, is a better word for it.
- diab0lic 9y agoYes, I said exactly that -- it has been trending downward at a high rate and I'm shocked it hasn't gone to zero yet.
- adventured 9y agoI suspect it might have seen another panic sale, had it not so quickly moved from ~$4k to $20k (two months). Once the mania took hold, and millions of lay person investors piled on (Coinbase now has more accounts than Charles Schwab), there was probably no alternative scenario possible other than to go from extreme bubble straight to implosion.
- diab0lic 9y agoI didn't know the Charles Schwab statistic, would you happen to have a link for that one? I'd love to be able to share it. Thats nuts.
- sofaofthedamned 9y agoIt is. Plenty of people like me who don't deal shares are with CS only to sell their RSUs.
- not_kurt_godel 9y agoI suspect that the exchanges are doing their best to keep the prices artificially high by limiting sales and withdrawals under the guise of technical issues and support load.
- diab0lic 9y agoThat honestly wouldn't surprise me either, I have very little trust for the exchanges.
- aviv 9y agoThis. Very much this. 100% this is a major reason.
- gigatexal 9y ago+1 to all of the above. I am just buying small chunks of it here and there as the price falls with play money. It's not much of an investment grade thing yet imo so that's how I play it.
- tscs37 9y agoThere has been some significant dumping, Poloniex had a 233k Volume for about the 5 minutes that they price fell below 7k there (it's trending below again). It's probably someone trying to push the price up no matter what (or a shitload of orders with magic price points that people setup)
- InclinedPlane 9y agoHas anyone even done the math on how fast 100% turnover of BTC would take in terms of the current transaction processing volumes and delays?
- lafar6502 9y agoMaybe because transactions are so slow it’s not possible to sell fast enough
- dragonwriter 9y agoTransaction processing speed should only limit the speed at which BTC are loved on to or off of a specific exchange, but not the speed at which they trade on the exchange which should not involve the blockchain at all.
- chollida1 9y agoSomething to think about.... I don't really want to get into another Tether discussion but someone who trades will be well aware that volatility is usually much more severe on the way down than on the way up. Hence the saying "Equities take the escalator up and elevator down". With Bitcoin we saw larger volatility on the way up, than on the way down, ie it went up in less time than it took to come back down. This is atypical in the markets and suggests that something is propping up the price of bitcoin that doesn't exist in other markets. The other place you see this is on the day of a IPO where the banks that lead the IPO defend the share price by strong artificial buying at the IPO price.
- radicaldreamer 9y agoThat "something" is possibly fraud (see MtGox bitcoin pricing before the shutdown)...
- Analemma_ 9y agoTrading volume is actually still pretty low, by BTC standards. This is actually a little worrying, since it indicates that the panic hasn’t even started yet.
- KasianFranks 9y agoIt's being 'walked' down. This is what happens when you've got low volume and institutions manipulating the price.
- diab0lic 9y agoI'm really shocked this panic hasn't set in yet, I would have bet otherwise. I wonder if it'll be a slow slide all the way down.
- Analemma_ 9y agoI imagine it will kick in when the truth comes out about Tether and USDT becomes worthless. Right now the evidence is overwhelming, but there's still no smoking gun. When Tether/Bitfinex declares bankruptcy, or the CEO is arrested at the airport trying to flee to Vanuatu with a suitcase full of cash; that'll be when the bloodbath starts.
- nugget 9y agoKeep in mind Bitcoin miners (and Ethereum miners et al.) keep producing a not-insignificant number of coins every day, at least a % of which are typically sold to pay taxes, electricity, and other operating costs. A constant stream of new investment is needed to offset that sales pressure.
- branchless 9y agoIf only someone else needed bitcoin. For example sovereign issuers of fiat currency insist that taxes are paid in their fiat currency. Because that's what really makes a currency once we get past the facile "a unit of exchange" chat.
- bluecalm 9y agoIt's not even taxes. If you get a dollar it means someone else borrowed it and they have to give it back at some point or a powerful entity with and army, police and legal system will go after their assets. Your dollar will always be valuable to someone with debt. BTC are just pretty tokens once the craze is over. There is no reason for anyone to give you anything for it.
- branchless 9y agoNot quite. You don't have to borrow a dollar for any old thing. Yes you need to eat and the shop sells food in dollars, but we need to extrapolate more. The shop wants dollars because they too have to pay their taxes. You could find a shop that takes bitcoin. You buy all your food there. Life is good, you are sat with your girlfriend eating croissants from this store. There's someone at the door. It's the government. Taxes time. Your point about the state having a monopoly on violence is critical. They want their taxes, they will send you a letter. Then another letter. Eventually they send a guy with a gun. I don't necessarily have a problem with the state having that monopoly. I'm not some raving libertarian. But the failure of bitcoin advocates to understand this distinction is wearing.
- TekMol 9y agoAfaik about $20m in bitcoins are created via mining per day. If that is insignificant or not is an interesting question.
- ww520 9y agoThe Great Unloading is well underway. The fear of missing out (on board) drives the price on the way up. The fear of missing out (get off) drives the price on the way down. Classic trading cycle.
- smrtinsert 9y agoWhere are the store of value guys now? I honestly want the rationale behind this explained.
- KasianFranks 9y agoRight here. This is a much needed correction and one that any typical trading vehicle would experience with a run-up similar to BTC. Good times ahead.
- tscs37 9y agoObviously, it's a great store of value if you bought bitcoin in 2017 or earlier! Tbh, the entire "store of value" story never quite felt right, the original whitepaper was advertising it as currency, yet, it seems unusable for any kind of financial transaction at the moment. Even short term is a risk, the fees are just as high as the volatility and a bank transfer has simply become cheaper.
- paulmd 9y agoFees have actually come back to earth over the last month (although if there is a panic and people start competing for block space, you can expect them to quickly jump back up). Volatility is one thing, at this point you almost expect a daily 10-20% swing in either direction. The bigger problem has been a relentless downward trend over the past month.
- lucozade 9y ago> Fees have actually come back to earth over the last month Well yes, but who would to want to use Bitcoin as a medium of exchange now? The period of fee inflation will surely have killed that off for all but trivial uses. Similar rationale with Bitcoin as a store of value. A 7% 30 day vol vs USD is, well, chunky. As a vehicle for speculation and short term vol trading it's clearly still a thing but that's not quite what it was intended for.
- sincerely 9y ago
- gtcode 9y agobitcoin may find support on bitstamp above 6600 (currently 6900). buy limit 6666.66
- KasianFranks 9y agoTime to set your buy triggers @ 5900.
- deleted 9y ago[deleted]
- setra 9y agoTo keep this in perspective bitcoin was under $1000 at the start of 2017. It is still a 700% increase since just that recent time.
- ajross 9y agoETH is off almost 45% from its peak too. For a few days it was stable and it looked like the BTC drop was just a reshuffling within the crypto world, but it seems like that buffer has been blown through and we're in a full-on correction now. Not the expected crash, though: it's been going steadily down, which surprises me. I've always though the lack of liquidity would produce a crash-to-zero when the bear market came. But there appear to be people buying BTC even now. ... Who?
- dragonwriter 9y ago> But there appear to be people buying BTC even now. ... Who? Possibly the same people who are already holding a lot and not selling, which is why the volume is low. If those people don't have a lot of free non-BTC assets you'd see some bargain hunting as other investors try to exit, but limited overall volume no matter how hard the rest of the market is running for the exits and driving the price at which the true believers can buy down.
- bb88 9y agoThere's $7000 left to short.