Bitcoin Forum

http://www.reddit.com/r/Bitcoin/comments/1xyk0t/as_soon_as_mtgox_fixes_btc_withdrawals_the_price/

ppl selling BTC because they wanna ride the wave or just panic, i am sure some smart guys are buying huge, mtgox is one of them.

Why is the price as low as 340 currently at MtGox, and 659 at bitstamp?

I know Gox currently does not allow btc withdrawals, but fiat withdrawals are also very much delayed, and why would people rather have fiat at MtGox than bitcoins. After all they can withdraw the coins when and if withdrawal of btc resumes, which I think will happen.

If there are fears that MtGox is running fractional reserve, why does it make sense to sell their bitcoins there currently?

The real question is who is now massively selling BTC on Gox now and why.
Thousands of coins are being sold in batches (100-300 pieces).

The BTC-price on MtGox is a reflection of peoples believes on how they will be able to get their money out the easiest/fastest/safest. The fact that the price is so much below other exchanges indicates that people are more confident they can get fiat out than BTC.

You never know. Could it be someone 'in the know' ? This has happened before, ref. the senate hearings. So if there's an investigation and dangers of imminent complete shutdown in regards to govt. investigation, it could be scared money wanting to get out. It could also be large investors and early adopters that still has a good profit at 300ish, and just wants to get out ASAP. Maybe they even have a japanese bank account, which is the fastest way to move money out now apparently.

All of this is just pure speculation of course.

Sure, but the timing is suspect.

Thanks, but does that really make sense?

Apparently Gox is working hard to fix the btc withdrawal issue, and other exchanges have already implemented fixes for the malleability thing. Since bitstamp is at 659 and gox at 340, does it really make any sense to sell at 340? Would it not be better to wait a bit, and see if the btc withdrawals get reinstated? When that happens, the Gox price will probably shot up, or if not, it is possible to withdraw btc and sell it elsewhere (if not holding it).

Fiat withdrawals will probably take a long time to go through anyway, as most folks do not have a japanese bank account. And while most withdrawals will be stuck in 'processing', the gox btc withdrawal option will be reinstated, and price will go up, and all these panic sellers are looking at a loss.

What do you mean about the timing being suspect, could you elaborate on that?

I wonder why somebody is willing to dump thousandes of coins today, after Gox news.
This unless this guy has some insider information.

conspiracy alert  ;D - who knows what gox is doing behind the scenes.  they could be displaying false sales at lower and lower prices to induce panic sells for stop losses knowing panickers cant get their coins out or when that will be. hell, gox could even be buying the coins themselves and selling them on the other exchanges for quick and easy profit. 

The "guy" drove back the price to 312$, near previous bottom.
Now what?

They could basically do whatever they want with their own exchange, but I do not think that's the case.

If anyone saw the bloomberg piece (http://www.bloomberg.com/video/can-bitcoin-come-back-from-multiple-hacks-~XPcnslQRTu4drafGngWdw.html), the guy with the Boston University logos in the background went pretty rough on the fact that bitcoin is volatile, and he also stated that if bitcoin is to survive (what hoopla for an academic to buy into..), confidence needed to be regained (as if it is lost currently), and he pointed to the btc-e flash crash as to how unstable bitcoin was.

So if we're putting on the conspiracy hat, it could be a deliberate concerted smearing campaign, and bitcoins being sold at MtGox could be some rich bank trying to spread fear in the market. Perhaps the btc-e flash crash was the first, now gox, and what next? Bitstamp or any other exchange having a flash crash with rich bankers money. This is not something that everybody could do, but there's some quite rich people out there that could play the exchanges.

With the current market cap of about 8 million, this list shows a list of 100 people that's more worth than that
http://www.forbes.com/billionaires/list/

And then just think of banks and financial firms. What's some millions for them if they want to cause fear in the markets?



Hm.. and why's the latest announcement made as a pdf? If there's a 0-day exploit, couldn't that mean a lot of customers could be attacked? I'm not clicking that announcement. Such announcements should not be put out as pdf's. Maybe I'm too paranoid, but rather safe than sorry.

The question is, who the hell is buying them!!

I would certainly buy if I had fiat on mtGox

No I dont think so.

Some very strong hands.

How is that quick and easy when exchanges require verification to get cash out? Mark cannot move huge amounts of money that easily.

I had fiat and coins locked in gox. I bought in with the fiat just recently. Figure why not, can't get the money out anyways.

If gox goes belly up, oh well. One of the whales will send a highly paid assassin after mark to avenge my stolen monies.

I am buying of course. If I could quickly move fiat into gox, I'd buy even more. This is simply an unfounded panic. Sure, Gox is a shithole, but it will reopen btc withdrawals in a week and the price woule be 700-800 then. Selling at 300 now is plain idiotic, so thanks for that to whomever is selling.

I've observed this often now: It is really only 2011 kids who get this.

Price is crashing plz HELP!