Posted on 7th December 2013 by Administrator in Economy |Politics |Social Issues

, , , , ,

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

Tyler Durden's picture


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:

  1. Gayle says:

    I think TPTB view Bitcoin, despite its supposed threat to the dollar, as a way to condition people to accept totally digitalized currency.

    Hot debate. What do you think? Thumb up 5 Thumb down 3

    7th December 2013 at 10:48 am

  2. DaveL says:

    I turned 73 two days ago. That means that my brain, along with other things, is half the size it used to be. What is a “bitcoin” and what do you do with it?

    Well-loved. Like or Dislike: Thumb up 10 Thumb down 0

    7th December 2013 at 11:35 am

  3. T4C says:

    Yes Admin. It will be an epic battle.


    Like or Dislike: Thumb up 1 Thumb down 1

    7th December 2013 at 11:37 am

  4. Administrator says:


    It’s a digital crypto-currency that bypasses the banking cartel where people can buy and sell without government control. One bitcoin was worth $200 six weeks ago. Last week one bitcoin was worth $1,200. Today one bitcoin is worth $600.

    Happy birthday!!!

    Well-loved. Like or Dislike: Thumb up 10 Thumb down 0

    7th December 2013 at 11:52 am

  5. T4C says:


    Here’s a comment from ZH on this story.

    Dick Buttkiss

    I expect the highs and lows to become less extreme over time, such that speculating in BTC as an asset gives way to exchange in a generally appreciating monetary unit and depreciating fiat currencies are abandoned accordingly.

    If so, then the state as we know it will be on its way to becoming a thing of the past, the sooner the better.

    Meanwhile, here again is the brilliant Stefan Molyneaux on BTC:

    Here Stefan Molyneaux reads Satoshi Nakamoto’s Original Bitcoin White Paper
    If you care to read it here is the pdf.

    Like or Dislike: Thumb up 3 Thumb down 0

    7th December 2013 at 12:02 pm

  6. sensetti says:

    HAPPY BIRTHDAY DAVE L !! And many more.


    Well-loved. Like or Dislike: Thumb up 16 Thumb down 0

    7th December 2013 at 12:10 pm

  7. Leobeer says:

    Strange coincidence: DaveL’s brain, along with other things are half the size they used to be and bitcoin also has been halved.

    DaveL, I hope you have many more birthdays and hopefully your brain and other things don’t continue to shrink. Cheers.

    Well-loved. Like or Dislike: Thumb up 6 Thumb down 0

    7th December 2013 at 12:34 pm

  8. Thunderbird says:

    This just proves that Bitcoin is not money or a currency that can be considered reliable. It can be manipulated for speculation just like any other commodity.

    Like or Dislike: Thumb up 5 Thumb down 2

    7th December 2013 at 12:43 pm

  9. bb says:

    If bitcoin drops back to the starting price I will then be convinced it is time to buy.

    Like or Dislike: Thumb up 1 Thumb down 2

    7th December 2013 at 1:03 pm

  10. a cruel accountant says:

    What the difference between bitcoin and BS. Nothing except you can use BS as fertilizer.

    Well-loved. Like or Dislike: Thumb up 11 Thumb down 1

    7th December 2013 at 1:43 pm

  11. a cruel accountant says:

    What the difference between bitcoin and a dollar bill. Nothing except you can use a dollar bill to wipe your ass.

    Well-loved. Like or Dislike: Thumb up 10 Thumb down 1

    7th December 2013 at 1:45 pm

  12. Stigmation says:

    Wow it crashed. I am truly shocked. I mean its only done that a few times before. Damn near got to zero. What people want in a currency is stability. Bitcoin fails in that area in spades. Plus it can be hacked, manipulated and in general screwed around with, even more so than gold or silver.

    Like any ponzi scheme, or MLM its good to be on board first. If your late to the party, you get to clean up. I want a currency that I can hold and is in my possession. Even crap dollar bills are better than bitcoin. As speculation, just like stocks, the actual value is what someone is willing to pay for it.

    I expect bitcoin will see zero, or close to it again. Then the government will step in to save us and make it illegal. Then thats that.

    Hot debate. What do you think? Thumb up 6 Thumb down 3

    7th December 2013 at 3:13 pm

  13. Billy says:

    Hey you Shitcoin Fanbois?

    How’s that workin’ out for ya?


    All’s you all did was make the anonymous creator of Shitcoin very rich… he’s enjoying his Shekels while you watch your shitcoins melt away.

    Sukiaki Hatamoto or whatever his “name” is, very likely made damn sure to give himself hundreds of thousands of shitcoins for free (and why not? He’s the one who created them in the first place). I wonder how much gold and silver he bought with the proceeds from dumping large amounts of shitcoins that everyone bought into? We will never know…

    Sorry… schadenfreude is part of my DNA…

    Like or Dislike: Thumb up 5 Thumb down 2

    7th December 2013 at 10:33 pm

  14. Bitcoins Now Can Buy You A Tesla Model S | BitCoin Trading Robot and StrategiesBitCoin Trading Robot and Strategies says:

    […] No Title […]

    Like or Dislike: Thumb up 0 Thumb down 1

    7th December 2013 at 4:11 am

  15. llpoh says:

    I fucking told ya so, youse bitsuckers.

    It is very simple – bitshit trades in very low quantities. Small volumes of buys drive the fucking price through the roof. A few hundred “investors” (read gullible mofos) run out and buy ten each (“woohoo I iz gonna be a rich mofo, I sure iz”), and the price rockets. Mr Bitcoin magnate sees this and says “Eureka, time to sell, those gullible mofos are gonna buy me a new Ferrari”), and dumps a couple of thousand of those suckers, pockets his millions, and waits for the next wave of suckers to come along.

    For fuck sake – let me say it again. Bitcoins are bought/sold in very small quantities. Small buyers drive the price up as they get on the bandwagon. When the price gets up the larger players, who already own lots of them, dump bitcoins onto the market and fuck the small players in the ass.

    Why don’t you bitcoin buyers just take your $1200 bucks down to the streetcorner where you can buy a dozen blowjobs. It would be lots more fun than spending $1200 on a good assfucking where they do not even apply lube.

    Stupid is as stupid does.

    Like or Dislike: Thumb up 5 Thumb down 2

    7th December 2013 at 7:16 pm

  16. llpoh says:

    Billy – large amounts of those fuckers are not traded. If they were, the price would be much more stable. The large holders dump them, as you say, but they do not dump large amounts of them or they would get nothing for them. They are trickling down their holdings so the stupid will keep the price propped up.

    Like or Dislike: Thumb up 0 Thumb down 2

    7th December 2013 at 7:18 pm

  17. Zarathustra says:

    What Llpoh said (did I really say that?)

    Like or Dislike: Thumb up 3 Thumb down 1

    7th December 2013 at 7:33 pm

  18. AWD says:

    Did you buy the dip? No? Lost out on a $300 appreciation in 3 days? You gotta think like a trader man….

    Like or Dislike: Thumb up 0 Thumb down 0

    7th December 2013 at 9:10 pm

  19. AWD says:

    China October Gold Imports Surge To Second Highest Ever
    Submitted by Tyler Durden on 12/08/2013

    According to Hong Kong customs data, in the month of October (with the usual one month delay), China imported 148 total tons of gold in a month in which the price of gold, once again plunged. Curiously, unlike momentum chasers of paper ETF promises to get gold delivery, China continues to BTFD in gold, and the 148 tons of import in the past month was the second highest monthly import ever through Hong Kong, second only to the 224 tons imported in March of 2013. Compared to a year ago, when the price of gold was over 30% higher, China has imported over 200% more than the 48 tons it bought through Hong Kong a year ago. At least someone is grateful for plunging gold prices.

    Like or Dislike: Thumb up 1 Thumb down 0

    7th December 2013 at 9:11 pm

Leave a comment

You can add images to your comment by clicking here.