Topic: Bitcoin Prices Down on Spike in Selling (Read 1231 times)

Looks like we stabilized around this area. What is likely to happen is that we chop between 575-550, a consolidation since there is significant support and bitcoin sold off so fast. The fact is that we are still short term bearish because we tumbled almost 100 points from the recent high, until we see volume picking up on the bid side, I will stay short term bearish.

My yesterday's head and shoulder pattern broke down and target is 550. @ibankbitcoins
http://www.ibankbitcoins.com/sites/default/files/resize/users/user1/2014-06-24_chart-947x661.jpg

Selling? I see a lack of buying. I dont see selling. Look at the volume.

"The USMS reserves the right to reject any bid for any reason whatsoever. The USMS reserves the right to sell all, some or none of the bitcoins at auction."
- Terms of Sale < http://www.usmarshals.gov/asse... >

>>>

I think that's important to note, & perhaps we should be more concerned about it.

This could be beneficial in regards to ensuring a fair market value; however, it also allows for a great deal of selectivity, and could be used as a tool for gov. to enforce their will - whatever their designs might be. At any rate, it will be far from pure competition and Pareto efficiency.

As impressive as the entire line of possible buyers at the auction look like, its actually bad for us, the small-fry traders and merchants. These are the type of people that manipulate markets and make profit from the sweat of others - and that's in a HIGHLY REGULATED industry. Imagine what these whales will do to the exchanges

some great things to come out of this

The US government has made bitcoin even more legitimate with the selling of btc

this must be the ultimate tick for btc as a currency if your own government is profiting from btc

another tick and if I am correct is the purchase of btc by this organisation BNP Paribas (the Bank of Paris), never heard of a bank purchasing btc


a list of investors looking into buying the silk road btc from coindesk

http://www.coindesk.com/list-possible-silk-road-bitcoin-bidders-allegedly-leaked-us-marshals/

Daniel Folkinshteyn, assistant professor at Rowan University
Barry Silbert, CEO for SecondMarket
Luther Lowe, director of public policy for Yelp
Malcolm Oluwasanmi, chairperson of Little Phoenix Investment Group
Fabrice Evangelista, quantitative arbitrage at BNP Paribas
Michal Handerhanm, co-founder and COO of Bitcoin Shop
Dave Goel, managing general partner of Matrix Capital Management
Dinuka Samarasinghe, investment professional
Chris DeMuth Jr., Rangeley Capital
Fred Ehrsam, co-founder, Coinbase
Jonathan Disner, corporate counsel at DRW Trading Group
William Brindise, head investment manager at DigitalBTC
Michael Moro, director at SecondMarket
Jennifer R. Jacoby, lawyer at WilmerHale
Sam Lee, co-founder, Bitcoins Reserve
Shem Booth-Spain, artist and musician
Avarus Corporation

Did you see any bears around???




 

Bitcoin prices were down sharply on mid-week selling, with prices recovering slightly to $561 after dropping from near $600 on Tuesday. The selling started Tuesday night, and was finally met with a burst of buying early Wednesday EST.

It's been mostly a quiet week for Bitcoin and, even though it was a slow news week, most of the stories were generally positive. Despite calls from some parts of the Japanese government to regulate Bitcoin, the ruling party has decided to hold off on a final decision until more information can be gathered from both sides of the debate.

Japan was made famous in the Bitcoin world by being the home of Mt. Gox, that once held the title of the world's largest Bitcoin exchange. Mt. Gox filed for bankruptcy protection in February after claiming hackers stole more than $750,000 in Bitcoins, under mysterious circumstances that don't sit well with many in the Bitcoin trade to this day.

According to CoinDesk, Canada passed bill C-31, a financial reporting bill that also defines regulations and reporting requirements for "dealers of virtual currency" in the definition of a money service business. The new law isn't expected to be fully implemented for at least six months, so Bitcoin businesses will have a bit of time to digest the new regulations.

Here in the US, bidders are lining up for Friday's auction of Bitcoins by the US Marshals Service. If you thought you could just jump in and make a bid, guess again. Bidders have to put up $200,000 to get in on the auction, and you'd be up against buyers from Wall Street and Silicon Valley that include banks, hedge funds, and investment brokers.
 
One of the challenges for big players in the Bitcoin exchanges is liquidity. Trades of as few as 500 Bitcoins can induce price swings in the market, and the government sale of 29,656 Btc is a chance for big players to stake out a position in the market, without paying the premium of rising prices when buying through the Bitcoin markets. Even after this sale, the government will still have more than 114,000 Bitcoins in its stash, that were seized when Silk Road, the online drug buyer's market, was raided by the FBI.

Overall, the Bitcoin community should probably not consider the entrance of hedge funds and investment brokers to be a positive sign for the digital currency. These are largely the same people who brought the country to near financial collapse, and play the stock market like it's their own private money farm. Having them secure a large financial stake in a market that's still mostly unregulated is not something to welcome with open arms. These are not companies that make money by adding value to markets and processes. These people wouldn't be at the function without a plan to profit off Bitcoin - and that profit, like most of the money they make, will come out of the pockets of smaller players.

On June 30th, the government will announce the winners of the auction - and we may also be finding out who our new digital currency overlords will be.







-RedTea
Independent News for the Right Minded American




redteanews