Bitcoin Price Doubles in Three Months on Record Volume

Baron

Baron

ET Founder
Bitcoin has been on fire the past few months, going from the $225 range back in September to over $458 as of today on volume of over 2 Million BTC trading daily . It's been speculated that a weak yuan is driving Chinese investors into bitcoin in droves, but no matter what, there's no denying that Bitcoin is absolutely on fire.

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In 2014, the primary bitcoin exchange called Mt. Gox went bankrupt because they lost about 800,000 bitcoins due to theft and mismanagement, and that sent the price free falling because at the time there was great uncertainty about bitcoin's future. Nowadays, there are many exchanges out there so things are a lot more decentralized and stable than they used to be.
 
Zr1Trader said:
Thread right here at ET. 2011

http://www.elitetrader.com/et/index.php?threads/bitcoin-thread-anyone.221836/
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Good find, let me quote from post #3:

"Someone said yesterday that the order book only has like 30 grand in it. Too illiquid. "

So just because a dozen geeks traded among themselves back in 2011, that doesn't mean that the average forex trader ever heard of it or had access to it. Not to mention that 2011 was the time of the infamous runup to $32 and the following meltdown to $2... Most historic charts doesn't even show 2011...

But as I said, timing is everything....
 
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Baron said:
Mt. Gox went bankrupt...... and that sent the price free falling
More...

Well, I have to disagree here a bit. The price simply fell because it went literally vertical, and what goes up, must come down (specially if it is measuring practically worthless digits on a computer). People disagree what actually caused the quick runup, if it was Willie bot at Mt.Gox or the Chinese people with their no commission exchanges.etc. I could also say it was simply greed and mania. Mt.Gox went down in 2014 January, but price already dropped down from the ATH of 1200 to 380 in mid December, although rebounced to 990, by January.

Since we are talking about an incredibly volatile instrument here, one must realize that annual returns are very arbitrary, and it is more historic and useful to list the subsequent rallies and drops:

1. Up to 32 and back to 2.
2. Up to 266 and back to 100.
3. Up to 1200 and back to 166.
4. Up to 500 and back to 300... (most recent)

These are just the most historic tops and bottoms, specially in 2014 there were several other big ones, but these listed ones made the headlines....
 
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