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Why reports of Bitcoin’s death are greatly exaggerated
- ISL 13y agoEven on timescales of a month, the recent dip is mostly in the noise: http://bitcoincharts.com/charts/bitstampUSD#rg60ztgSzm1g10zm2g25zvzl http://bitcoincharts.com/charts/bitstampUSD#rg60ztgSzm1g10zm... On timescales of a year, comparable jumps are common: http://bitcoincharts.com/charts/bitstampUSD#rg360ztgSzm1g10zm2g25zvzl http://bitcoincharts.com/charts/bitstampUSD#rg360ztgSzm1g10z...
- Fuzzwah 13y ago> While it’s dependent on an at-the-minute market price, the movement of 27,365 bitcoins on the block chain on October 4, likely from Ross Ulbricht’s stash, nevertheless represents a substantial amount of holdings for the government. > In fact, conventional wisdom might suggest that with a governmental body owning so much of the currency it could create substantial market-maker powers within the bitcoin world. I did the conversion: 27,365 BTC = USD $3,426,084.77 at the current rate.
- mediocregopher 13y agoGiven how fast the price went back up (two days later, it's basically where it was when the SR story hit), my guess is the dip had little to do with confidence in bitcoins. I'd suggest it was the opposite. We've seen these dips before, and BTC always bounces back. People sold because they expected everyone else to sell, and they wanted to have some cash on hand so they could buy when the price bottomed out. When BTC_USD was at about $90 on btc-e there were something like 750 BTC worth of buy orders at $75. People knew it was going to dip then come back, so they sold so they could buy (self-fulfilling prophecy).