Topic: Why does the price appear to be so stable lately? - page 2. (Read 2969 times)
This stability is because the bears and the bulls are both sure they are right.
At a minimum I figured people whose investment in BTC is now valued proportionally greater than they are comfortable it being would have been selling here to rebalance their investment portfolio (e.g., move some of the gains from bitcoins into cash or perhaps other assets,)
For years there's been a question of how long it would be until custom chips (ASICs) would be manufactured for Bitcoin mining. Over the past several months it's looked like it would finally happen but nobody was sure if we'd really see it. Now that it's finally come and the network hash rate has begun increasing, I think this additional math power securing the blockchain is materially reducing the risk in holding bitcoins.
Yes, it may have risen recently a bit too quickly but I figure it was KimDotCom on a big buying spree before his "huge" Bitcoin tweet but when hoarders now try to figure out how much to rebalance their portfolios, I'm sure ASICs and the rising stream of positive announcements are causing them to increase the allocation that they're comfortable with.
If you think about startups, employees have NO opportunity to rebalance their portfolios before they are vested or hit their lock date. I don't know how that works on average but in the high profile pops that's been a very good thing for those who would have sold cheap.
speculation?
Because I said so! https://bitcointalksearch.org/topic/30-is-the-new-5-145904
But really, this is just a consolidation. Consolidation is needed so that naysayers can understand that this is not a bubble, and believe that we have a firm $30 level. After that, we move on.
I would be very surprised if we dont break 32 by Friday.
The price of bitcoin is anything but stable.
Probably means over the last week, versus each prior week since early-January.
- http://bitcoincharts.com/charts/mtgoxUSD#rg10zig12-hourzczsg2013-02-21zeg2013-02-26ztgOzm1g10zm2g25
Relative to the chart starting from early January:
- http://bitcoincharts.com/charts/mtgoxUSD#rg10zigDailyzczsg2013-01-10zeg2013-02-26ztgOzm1g10zm2g25
The price of bitcoin is anything but stable. We've seen the price double in two months. We have several daily swings of 5% or more per week.
speculation?
Ya, with the heavy buying over (or just paused perhaps) I was a little surprised to see prices stay in a narrow band after the run from $13s (was $13.51 on Jan 1st).
The exchange volume is low so fortunately there are not many sellers "locking in" their gains otherwise there isn't much stopping a pullback of maybe 15% or so.
At a minimum I figured people whose investment in BTC is now valued proportionally greater than they are comfortable it being would have been selling here to rebalance their investment portfolio (e.g., move some of the gains from bitcoins into cash or perhaps other assets,)
There are a lot more bitcoins currently held by people not entirely sure this valuation will stick than there are new flows chomping at the bit to buy at $30 or more.
But who knows, the money for this rally to $30 came from nowhere so who knows if there's more to come.
Rocket refuelling.. /calm before the storm
speculation?
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