News are always interpreted (or discarded) in function of the current market mood.
Like Blitz said, who cared about Cyprus? They are even less then a peck in the Bitcoin world.
And yet everyone was talking about it when the market was bullish.
Idk, that's like saying citizens in Thailand already have tons of Bitcoin that they are immediately going to dump on the market. The case in Cyprus is the opposite, the citizens will be more inclined to buy. If there are hardly any users, making something illegal (and only pseudo at that) is not a big deal.
It's about how one perceives
market actors will act -- not necessarily about how one perceives residents of Thailand will act.
Also, this doesn't exist in a vacuum. This "event" (or non-event as the case may be) takes place within the context of a very unclear and grey-market regulatory atmosphere, a landscape which is clearly changing.
I agree that the Cyprus scenario was blown way out of proportion at the time. However, I still believe the Cypriots/Argentinians will come around, just let it snowball a bit.
Then wouldn't you agree that the news itself doesn't matter -- only how it fits in with the context of market sentiment? Did anyone expect Cypriots to be buying bitcoins en masse?!
