Looks like insider buying bots caused (mostly) the big run up to $1200 and not supply and demand. Sure there was the China effect and general growing interest in cryptos and get rich quick, but the major factor was "Willy", the buying bot:
http://willyreport.wordpress.com
"It needs to be recognized that, whether intentional or not (though plausible ignorance only goes so far), Mt. Gox has effectively been abusing Bitcoin to operate a Ponzi scheme for at least a year. The November âbubbleâ well into the $1000â²s â and possibly Aprilâs as well â was driven by hundreds of millions of dollars of fake liquidity pumped into the market out of thin air (note that this is equivalent to âwith depositorsâ moneyâ). It is only natural that the Bitcoin price would deflate for around 5 months since its December peak, since there was never enough fiat coming in to support these kind of prices in the first place."
And before you start to cry and protest, read the whole analyses, it is very good, factual and objective...
http://willyreport.wordpress.com
"It needs to be recognized that, whether intentional or not (though plausible ignorance only goes so far), Mt. Gox has effectively been abusing Bitcoin to operate a Ponzi scheme for at least a year. The November âbubbleâ well into the $1000â²s â and possibly Aprilâs as well â was driven by hundreds of millions of dollars of fake liquidity pumped into the market out of thin air (note that this is equivalent to âwith depositorsâ moneyâ). It is only natural that the Bitcoin price would deflate for around 5 months since its December peak, since there was never enough fiat coming in to support these kind of prices in the first place."
And before you start to cry and protest, read the whole analyses, it is very good, factual and objective...
