Tag Archives: price
Bitcoin Having a Huge Sell Off, Here’s Why
Today was a tough day for Bitcoin. Here’s what happened.
The People’s Bank of China issued a notice restricting banks from handling Bitcoin. Baidu also stopped accepting Bitcoin.
There was a big sell-off that made the price fall from $1100 to $650 in an hour or two. Some people sold in a panic, accelerating the drop.
Others bought on the way down. Seems to have bottomed out in the low $600s and holding but we’ll see.
Many investors predict Bitcoin will climb back to $2000 by year end/ early next year, maybe more.
Bitcoin Price Breaks All Time High, Hits $270, $3 Billion Market Cap
Bitcoin Breaks $270 in Historic Climb
Today marks a new all-time high for the digital currency Bitcoin. For the first time ever, Bitcoin was traded at $270 on Japan-based exchange Mt.Gox. On Coinbase, the price of Bitcoin was just below $270.
With nearly 12 million bitcoins in circulation, Bitcoin now has more than a $3 billion market capitalization
Here are the charts showing the historic climb of Bitcoin.
Mt. Gox chart from Bitcoin Charts
Coinbase chart from Coinbase
Looking Back at the Last Peak
The last time Bitcoin reached prices this high was in April 2013. The currency reached $266 and then crashed dramatically.
Read: Did the Bitcoin Bubble Burst Already? (April 12, 2013)
This time, there seems to be more stability around this climb. Increased adoption and trading volume in China has contributed to the price climb.
Bitcoin Breaks $200 in Second Highest Historical Price Peak
The price of Bitcoin starting soaring over the weekend thanks to activity in China and the fall of Silk Road. The rally has continued and the value of 1 Bitcoin has now broken $200.
This is the second highest peak in the history of the cryptocurrency. The last peak was in April when Bitcoin hit $266.
Is today’s price a new bubble? Check out our coverage from April on that historic climb.
Read: Did the Bitcoin Bubble Burst Already? (April 12, 2013)
The last time Bitcoin reached a peak and crashed was due in large part to DDoS attacks on the exchange Mt.Gox. This time around, while Mt.Gox is still a major player, events at the exchange have much less effect on the overall Bitcoin economy.
What are your thoughts on this price rally? Will it keep going or correct itself?
Bitcoin Price Starts Soaring Again Thanks to Chinese Activity
Today, the price of Bitcoin is around $165 per BTC, up from $125 per BTC a week ago. What’s causing this dramatic price increase? There are a number of factors at work which we highlight in this article.
The dust settles on Silk Road
Just a few weeks ago, the major news running through the Bitcoin community was the seizure by federal authorities of Bitcoin drug marketplace Silk Road. Silk Road’s operator, Ross William Ulbricht, was arrested for drug trafficking, attempted murder, and other felonies.
Read our full coverage of the Silk Road seizure and Ulbricht’s arrest
Immediately after this news broke the price of Bitcoin dropped nearly 15%, but recovered quickly as people realized that the largest bad actor int he Bitcoin ecosystem was taken out of play.
Baidu, the “Google of China” starts accepting Bitcoin
This week, Baidu, the #1 website in China, started accepting Bitcoin for some of its services. This is a great move in broader acceptance of the digital currency Bitcoin, especially considering China’s previous stances on virtual currencies.
Increased volume on BTCChina
Trading activity dramatically increased on BTCChina, China’s first Bitcoin exchange. See the chart below for evidence of that.
All in all, these factors, especially the activity in China, have made Bitcoin feel like a more secure and intriguing investment, therefore increasing the price in the short term.
No Big Deal; Bitcoin Price Recovers After Silk Road Bust
The Demise of Silk Road is Good for Bitcoin
This past week, notorious Bitcoin marketplace Silk Road was seized by federal authorities and its operator was arrested for running a massive drug marketplace that has generated $1.2 billion in illicit transaction value.
Immediately the price of Bitcoin dropped 20% and trading volume spiked on fears that this was a curtain call for Bitcoin. The underbelly of Silk Road was always rumored but nobody knew the magnitude of the operation was until the criminal complaint was filed against Ross William Ulbricht.
Link: Read our full coverage of the Silk Road bust
Chart courtesy of BitcoinCharts.com
But in a few days, the price of Bitcoin has nearly fully recovered as the dust has settled on that incredible story.
Ultimately, the demise of Silk Road is good for Bitcoin. It takes away one of the biggest targets and sources of negative stigma for the currency. With so much attention on Bitcoin, no one will be able to replicate the scale of Silk Road again, though some will undoubtedly try to fill the void.
With this marketplace out of the picture, the conversation on Bitcoin can turn to how the digital currency can be used to make markets more efficient and cash more programmable.
