On one of the Bitcoin threads last week I pondered whether TPTB were purposely driving the price of bitcoin to unsustainable levels in order to crash it in an attempt to discredit it as an alternative currency. Make no mistake about it, the bankers and politicians DO NOT like bitcoin. Anything that reduces their power and/or control of the monetary system is considered a threat. They may act unconcerned, but in the smokey backrooms where the real decisions in this country are made, the bankers are worried. This bubble and crash smells like a planned publicized event to scare people away from bitcoin. The MSM will now do their part by scorning and ridiculing bitcoin as a joke. TPTB are becoming a bit predictable.
Bitcoin Crashes, Loses Half Of Its Value In Two Days
Submitted by Tyler Durden on 12/07/2013 09:27 -0500nShare1
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: