
Bitcoin Price Slumps Again - dcawrey
http://coinde.sk/1hDdOuL
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Avalaxy
As long as bitcoin is seeing these huge crashes for no real reason, it's not a
mature investment vehicle. There's absolutely no valid reason to sell right
now, this crash is just driven by panicking people. I think this is mostly
because too much wealth is in the hands of too few people, and people who
never really traded before (techies, mainstream people, novice traders, etc.)
now invested in bitcoin, and try their hands on trading.

I hope all this panic selling will lead to a better distribution of the
bitcoins, so that it may become a more stable investment vehicle. These random
huge crashes aren't doing bitcoin much good. People want stability if they are
to accept this as a currency.

~~~
TylerE
Aren't those all arguments in favor of liquidating any position in BTC?

~~~
Avalaxy
Yea, they may be. But not now. The trader's goal is to buy low, and sell high.
Selling low makes no sense.

~~~
camus2
a trader needs to cut his losses. Selling low makes more sense than losing
all.

~~~
Avalaxy
Agree with the cutting losses, but we see these patterns all the time with
bitcoin. Big chance it will be up to old levels in 4 days. The long-term
sentiment for bitcoin is very bullish (or at least that's my opinion). Cutting
losses is not a very logical strategy for long positions in bitcoin imho.

~~~
TylerE
The problem is that at some point any rational trader will want to cash out at
least some profits. This swings are showing how little it takes to tank the
price. The less liquidity there is, the more academic the trading price is.

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eknkc
I just watched it go down from 750$ to 710$ in something like 5 minutes.

I know that it fluctuates like that other times too but this is extraordinary
to watch.

[http://bitcointicker.co](http://bitcointicker.co)

PS: I got my first bitcoins 3 days ago. So, if you want something else to
crash to ground, just let me touch it.

~~~
infruset
Oh, you must be one of the first people who tried to access healthcare.gov
then :-) that explains it

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drawkbox
There isn't a crash in bitcoin price, there is a market sale going on just in
time for the holiday. Entry points in down markets is smarter than entry
points at the peak of they hype. This happens on the stock market everyday.
When buying, red is green.

In the end, crashes filter out the most speculative and eventually the shorts
(in other markets -- the only way to short bitcoin is selling so it will be
more volatile during these machinations, it will need shorting soon as it does
help keep a solid bottom), there is apparently lots of speculation padded in
the recent bitcoin price.

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elwell
With market activity like this, it seems humorous to hear stories of
employees' [0] _salaries being paid in BTC_.

[0] - [http://news.cnet.com/8301-1023_3-57614544-93/kentucky-
police...](http://news.cnet.com/8301-1023_3-57614544-93/kentucky-police-chief-
to-be-paid-in-bitcoin/)

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kunle
Out of curiosity, does anyone know if the Chinese Central Bank action
(discussed on HN here:
[https://news.ycombinator.com/item?id=6853305](https://news.ycombinator.com/item?id=6853305))
prevented Chinese citizens from converting RMB into BTC directly from their
bank accounts? Might be behind some of this (from what I understand, BTC was
one of the only ways mainland Chinese citizens could /legally/ convert RMB
into other currencies above the daily limit).

~~~
cstejerean
The interesting thing is you can still use bitcoin to convert RMB to USD
regardless of bank policy, by investing in mining. If you can pay for the
costs of mining (hardware + electricity) in RMB, you can then sell the coins
you mine for USD, completely bypassing capital controls. Even if you are
mining at a slight loss, it might still be worth it to someone really keen on
turning more RMB into USD then otherwise allowed.

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teawithcarl
The tiny division of Baidu which "quit" accepting Bitcoin (and was the only
part of Baidu which ever accepted BTC) was tiny. Think 1/10,000th of Baidu.

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Aqwis
Bitcoin is crashing hard right now. Down to $730 on Mt. Gox, the lowest since
November 21.

~~~
mcphilip
Dropped from $800 to ~$700 in the last 15 minutes:

[http://bitcointicker.co/](http://bitcointicker.co/)

~~~
Aqwis
Yup, just went down $30 in under 3 minutes. It's in free-fall.

~~~
MysticFear
This is when you are thankful for slower transaction times than the stock
market.

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axaxs
Yawn. Of course it did. Listen folks, China was driving value. The upticks now
are the clueless looking to make some money. If you believe in it, by all
means. If you're looking to buy for profit, please don't. I stand by my
prediction of sub 100 soon...

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drakaal
The Difference per "exchange" are interesting. A buy at
[https://www.coinmama.com/](https://www.coinmama.com/) is still over $1050

A buy at [https://www.mtgox.com/](https://www.mtgox.com/) is $750

That's not quite but really close to 50% more than MtGox.

~~~
jellicle
This ought to be a giant warning sign.

Illiquidity of that magnitude should suggest that you stay the fuck away, that
there's no real market in bitcoins and therefore that the risk is probably
much greater than you perceive.

But, hey, this just means that I'm envious of all your internet riches, or
something like that, so feel free to disregard.

~~~
drakaal
Actually, I only just bought A coin. And mostly because it will be more fun to
watch with skin in the game.

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grahamburger
Wow I lucked out. I bought about $70 in Bitcoin earlier this year. Cashed out
on Monday fir $800, I needed the money for some car repairs. Looks like I
might be able to repair my car and spend the leftover to get just as much BTC
as I had last week.

~~~
teddyh
And all from the comfort of your own home in your spare time!

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loceng
Couldn't this just all be someone dumping a huge amount of their Bitcoins to
convert it to real $?

Same thing can happen when someone who owns a lot of stock in a company lets
go of a huge amount of stocks in a company all at once..

~~~
maxander
I was wondering when Satoshi Nakamoto would decide to cash out.

If one (or several) big account(s) was making a huge trade like that, though,
it would be visible on the block chain.

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scottcanoni
This is crazy fun to watch. I just bought 4 bitcoins at $685 from Coinbase and
it's already up to $777 just 10 minutes later. I think I hit the right time to
buy, now I wait for it to go to $2000.

~~~
Aqueous
I think it's going to be pretty wild for the next few days/weeks because of
the China news. I would sell at $777 and wait for the ride to be over before I
bought in again. I got out earlier today at $900 anticipating the China news
to sink in later today. Sure enough when China wakes up it crashes.

I'm going to wait until it stabilizes around a price before I buy again.

The good news: China can't ban BitCoin as a currency again, and the US looks
like it isn't going to.

~~~
ekianjo
China woke up and itsnot crashing that much more.

~~~
maxerickson
Look at a chart of the last 30 hours. I wouldn't draw too many conclusions
minute to minute here, it's anybody's guess where things will be in a few days
(I suppose as is per usual with bitcoin).

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pliny
Just gained 100 dollars in a minute.

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TallboyOne
Lost about $8000... made it back within not long. ughhh my stomach

~~~
e12e
Lost, as in you've invested N+8000 USD, and were down to N, or as in lost out
on the opportunity to cash out?

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TylerE
Under $660 now.

~~~
Anderkent
Over $800 now. I guess someone with a large wallet just dumped everything
carelessly.

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ye
Went from 780 to 650 and back to 890 in 50 minutes.

