Why the large drop? mod note: post 82

Sarah1916

Is there any reason for the large drop overnight in the 4 currencies held on coinbase?

Lemsiper

When Bitcoin falls everything tends to more or less follow suit.

Kenny Logins

It's winding back about a month and flushing out all the FOMO buyers, I think..

I'd say the insider trading has something to do with it too.

dashoonage

tis the start of the xmas sales lads.....be grand!!!!!

cryptomines

dashoonage wrote: »

tis the start of the xmas sales lads.....be grand!!!!!

Yup, all on sale! This is just a correction that has been coming for a few weeks now, the 3rd major one we've seen this year. An amazing buy oppertunity for a couple of coins now, gonna stock up some more IOTA this morning!

soirish

might be relevant in this thread too

Sarah1916

Sarah1916 wrote: »

Is there any reason for the large drop overnight in the 4 currencies held on coinbase?

Because it's a bubble!

The thing that was driving the price up was everyone jumping on board. Now people are selling.

It's the people at the top of the pyramid that bought in at 19k or so that'll be stung. The smart ones have made their money.

Arbitrary

RoboKlopp wrote: »

Because it's a bubble!

The thing that was driving the price up was everyone jumping on board. Now people are selling.

It's the people at the top of the pyramid that bought in at 19k or so that'll be stung. The smart ones have made their money.

There is a lesser known bubble that peaked and popped around this time last year. It followed the exact same time line and an identical pattern.

The fundamental flaw was precisely the same as what I see with Bitcoin, I can't help but wonder if this is another classic Chinese pump and dump. The Chinese are the masters of the pump and dump, they invented it.

I'm referring to 4 Letter .com domains made up of consonants. Prices went from $150 up to $2700 in the space of approx 6-8 months. It also happened with a variety of other domain classes, including 6 digit .com domains which overnight went from worthless to valuable.

Domain mania gripped China and there were institutions throwing money around for people to borrow to buy these digital assets.

The fundamental flaw with this massive fluctuation was that user demand for these domains didn't reflect the change in price, it remained unchanged and the surge was purely investor driven.

I see the same issue with bitcoin, the price doesn't reflect the level of mass adoption. As a vendor accepting bitcoin as a payment method, it's been a sweet ride the past few months, but those who get stung in the tail accepting a currency that suffers huge drops are going to rethink accepting it as a payment method and this only stifles adoption rates.

Based on this pattern, I suspect Bitcoin is going to lose at least 50% of its current price between now and March. Just my humble opinion.

grindle

Arbitrary wrote: »

I suspect Bitcoin is going to lose at least 50% of its current price between now and March.

I love it when you talk dirty.

Wanderer78

Arbitrary wrote:

Based on this pattern, I suspect Bitcoin is going to lose at least 50% of its current price between now and March. Just my humble opinion.

It's clearly obvious, bitcoin is unusable as a currency in its current format, for many of the reasons that you have outlined. It 'll be interesting to see if it has a future, folks are gonna get stung though, some very badly

grindle

Wanderer78 wrote: »

... folks are gonna get stung though, some very badly

Only if they sell.

Tombo2001

Asking why a cryptocurrency is falling is a bit like asking why is it raining today.....trying to rationalise something like that is not going to help you very much.

Why has Bitcoin risen so much?

Is it because its an endorsement of a distributed risk model of currency that people view as a superior model to that currently regulated by Central Banks?

Or is it because people are buying it because its gone up so much, and they think therefore it will go up more.

I know which I think.

If its answer B, then dont look for logic when the thing starts to fall.

Remember all the irish housing market in 2007 - the demographics were supportive, interests rates were low, wages were rising yada yada yada all great reasons why house prices deserved to be where they were that just went out the window once the crash came. Thats how it rolls in a bubble.

daheff

grindle wrote: »

Only if they sell.

or buy


depends which way it goes

daheff

Tombo2001 wrote: »

Remember all the irish housing market in 2007 - the demographics were supportive, interests rates were low, wages were rising yada yada yada all great reasons why house prices deserved to be where they were that just went out the window once the crash came. Thats how it rolls in a bubble.

not to drag off topic, but the housing market bubble died because banks suddenly had no liquidity....businesses scaled back, jobs were lost. people couldnt afford to service loans and had to sell up at depressed prices.

Wanderer78

grindle wrote:

Only if they sell.

I'm afraid the believers in bitcoin are in that euphoric state that occurs in 'all' bubbles, I.e. prices will never fall! Be careful folks, be very very careful! I suspect the parasites and predators have entered 'the game', be prepared to play hard, but be prepared for the hard landing, as 'soft landings' are a myth!

Wanderer78

daheff wrote:

not to drag off topic, but the housing market bubble died because banks suddenly had no liquidity....businesses scaled back, jobs were lost. people couldnt afford to service loans and had to sell up at depressed prices.

Maybe it was to do with the global financial ponzi scheme of debt!

Arbitrary

grindle wrote: »

I love it when you talk dirty.

Haha.

Bookmarked. I'll come back and quote your post in March, right or wrong.

Tombo2001

daheff wrote: »

not to drag off topic, but the housing market bubble died because banks suddenly had no liquidity....businesses scaled back, jobs were lost. people couldnt afford to service loans and had to sell up at depressed prices.

Its not off topic at all.

Its about what happens in a bubble.

In a bubble - people are buying because the price is going up, and pretty much for no other reason.

However, so-called experts (ie vested interests) will wheel out all these logical reasons as to why the price will keep going up. Its just marketing spin designed to reassure people that it is not in fact a bubble.

And people buy because the thing is going up; but they think its ok because the experts have told them about X, Y , Z. In the case of the irish property market, Demographics was the big one.

And then when the thing crashes......and the reasons why are not really relevant here......the people who bought are standing there saying 'but what about the demographics'.......

You have wheeled out a list of reasons why the property market fell.

All kind of valid. But ultimately it wasnt that house prices fell, but how much they fell. And the reason they fell so much, was because of how much they had gone up in the first place. And you can look at all the details behind that; but ultimately, at the core of it, that was the issue.

EDIT - And I'm not explicitly saying Bitcoin is a bubble. I am simply saying 0 if you are buying this thing, understand what the reasons are for buying it - why is it good value at this price. If you cant answer that, then why are you buying it.

SteelyDanJalapeno

Tombo2001 wrote: »

Asking why an ICO is falling is a bit like asking why is it raining today.....trying to rationalise something like that is not going to help you very much.

Why has Bitcoin risen so much?

Is it because its an endorsement of a distributed risk model of currency that people view as a superior model to that currently regulated by Central Banks?

Or is it because people are buying it because its gone up so much, and they think therefore it will go up more.

I know which I think.

If its answer B, then dont look for logic when the thing starts to fall.

Remember all the irish housing market in 2007 - the demographics were supportive, interests rates were low, wages were rising yada yada yada all great reasons why house prices deserved to be where they were that just went out the window once the crash came. Thats how it rolls in a bubble.

Not too be pedantic but do you know what an ico Is?

crkcvnirl

Sarah1916 wrote: »

Is there any reason for the large drop overnight in the 4 currencies held on coinbase?

This is slightly off topic, watched "Banking on Bitcoin" on netflix last night.

There's certainly a lot of commercial interest in the blockchain element created around the currency. There's a lot of heavy hitters circling.

No one can really say where B.C will go, but the NYC financial regulator (who's a very cheeky chap) gives an indication where he and his peers want it to go.

Enjoy

Tombo2001

TiltedBrain wrote: »

Not too be pedantic but do you know what an ico Is?

Yes.

Not to be pedantic, but if you disagree with what I said, then why not say what it is you disagree with.

ZeroThreat

Looked at the total market cap about an hour ago and it was about $520B, it's at about $546B already again. So volatile...

brendanwalsh

It's a slaughter guys. The butchers have come to chop up the bacon for Christmas. Bitcoin bubble is slowly having the air leaked out of it. Bad sting in the tail.

cravings

i really like your posts! every one of them has made me smile. don't feel bullied, that's not how it is.

keep it up man.

SteelyDanJalapeno

Tombo2001 wrote: »

Yes.

Not to be pedantic, but if you disagree with what I said, then why not say what it is you disagree with.

Sure, how can an ICO dip or fall?

Tombo2001

TiltedBrain wrote: »

Sure, how can an ICO dip or fall?

You and your trick questions....

I'll fix the post.

SteelyDanJalapeno

Tombo2001 wrote: »

You and your trick questions....

I'll fix the post.

I didn't mean to trick! there's just so many new posters around we need to be clear on acronyms etc..

KilOit

This isn't that big of a dip, back in July the market cap was almost halved, went down 100billion this time. Feel bad for new people coming into the market now, so risky when it has growing so fast

jobless

5th 30% drop this year...you'd think people would be used to it by now !

server down

Is there any way to short bitcoin?

EagererBeaver

jobless wrote: »

5th 30% drop this year...you'd think people would be used to it by now !

The thing is that every time there's a new one, a new batch of investors get whacked for the first time.

GreeBo

jobless wrote: »

5th 30% drop this year...you'd think people would be used to it by now !

It still doesnt get any easier to take!

People booking their profits before the end of the year.

PopePalpatine

FML, I cashed out of LTC & ETH around 8:45am-ish.

WhiteMemento9

Bitcoin is up how much this year? How much still this month alone? The bubble has popped

People who have claimed over and over that this is all one giant bubble will now love sticking the boot in. They claimed the same when it was 2k, 4k, 6k, 10k etc. Stopped watch is right twice a day and at some stage these people were going to be right if they kept shouting long enough. I said exactly the same thing when people were in here claiming the bubble had popped for BTC when it had pull back at 2-3k range.

It could easily correct and surge on in the coming weeks or continue falling and the truth is no one really knows. You should be in these markets because you believe in the Crypto and not because it is a money train to hop on. I would guess that most of the people shouting about the bubble popping have never used a Crypo currency. After you get it set up and running and you see the technology in action with the ease of being able to send money in such a fashion it is an incredibly empowering thing.

The market is mental at the moment but many people actually believe in the ideas behind BTC and are investing in those. That future may end up being another coin that is not Bitcoin but in my opinion it is the future in some form or another.

Tigger

server down wrote: »

Is there any way to short bitcoin?

yeah toro or the likes

brendanwalsh

Gone down to 10.8k euro.

Crashing Hard everywhere. Hope everyone is staying safe out of sight of the butcher.

This is a hunger game. The odds are not in your favour.

asteroids over berlin

Happened last few years (obviously the more money in the market the more transparent the dips), it's the last trading day before holidays. They will be all back up to levels they were by first 2 weeks in January. Bitcoin is not a bubble! As more institutional investors become involved, expect dramatic dips a number of times a year, Xmas, some date in the summer where they all bugger off to the Hamptons and i think easter - can't remember. Relax. Happy Xmas and a huuuuge crypto new year:)

JJayoo

The news of insider trading and North Korean hacking has probably something to do with it.

10% drop in the last hour

smacl

PopePalpatine wrote: »

FML, I cashed out of LTC & ETH around 8:45am-ish.

Buy 'em back now, you'll be 20% up

Edit: 40%

smacl

Bitcoin at 9.4k, Coinbase and Kraken both a bit intermittent. I'd say some of those that were waiting on tier 2 clearance are suddenly grateful for the delay.



Something did indeed go wrong :pac:

Wow, the drop is accelerating

smacl

RoboKlopp wrote: »

Wow, the drop is accelerating

Seems to be fluctuating quite a bit, showing €10.2k now. Coinbase graph shows it went as lows as €8.8k in the last hour, no idea how reliable that is. Edit: And in the time to post that back to €9.6k, makes for fascinating watching all the same.

asteroids over berlin

just wait for the bounce! They are nearing 50%, going to be a huge bounce within the next 24 hours

at9qu5vp0wcix7

smacl wrote: »

Seems to be fluctuating quite a bit, showing €10.2k now. Coinbase graph shows it went as lows as €8.8k in the last hour, no idea how reliable that is. Edit: And in the time to post that back to €9.6k, makes for fascinating watching all the same.

Can confirm - bought in at €8859 in the last hour on GDAX/Coinbase.

PopePalpatine

smacl wrote: »

Buy 'em back now, you'll be 20% up

Edit: 40%

I sold my ETH on Coinbase, I should have transferred the damn things to Kraken. If I bought back into it an hour ago, maybe then I'll have a 40% profit.

smacl

Valentina Unkempt Oxen wrote: »

Can confirm - bought in at €8859 in the last hour on GDAX/Coinbase.

Well played, now €11.1k.

Zascar

server down wrote: »

Is there any way to short bitcoin?

I think you can go to www.igindex.com and bet on it falling. Also no tax as classed as betting afaik

Wanderer78

has the blood bath started?