Why did cost of bitcoins surge to 1200 then drop to 500 and 200?

[brendanjhwu]

Not a newb, but am a noob.

How did bitcoins rise so drastically???

[Emerge]

Not a newb, but am a noob.

How did bitcoins rise so drastically???

Supply and demand, then suddenly a decrease in trust in the currency.
After MtGox and a lot of places got hacked, it decreased drastically.

[Amph]

it was increased too damn fast that's why, when a thing like that happen, a crash is essentially mandatory after it, it's better to have a steady growth

also with still can't deal with 3800 coin per days from miners with a 1200 price value, the real increase will come with supply halving

[ranochigo]

Not a newb, but am a noob.

How did bitcoins rise so drastically???

I still remember this fairly clearly. That day, US Senate had a hearing and the price surged all the way to $900 before briefly crashing and China investors started to invest and accept Bitcoin then it surged past $1000. It was truly amazing I must say. Bitcoin was heavily regulated in China and it started to slide gradually. However, a few months later, Mt Gox became insolvent and the price crashed due to it being the largest exchange at that time and loss of confidence.

[Lauda]

I still remember this fairly clearly. That day, US Senate had a hearing and the price surged all the way to $900 before briefly crashing and China investors started to invest and accept Bitcoin then it surged past $1000. It was truly amazing I must say. Bitcoin was heavily regulated in China and it started to slide gradually. However, a few months later, Mt Gox became insolvent and the price crashed due to it being the largest exchange at that time and loss of confidence.

There definitely had not been a single 'day' that had an insane rise. It took the market almost 2 months to reach that price, before there were 2 huge dumps that brought it down.


The price had risen due to several factors. Bitcoin at that time had insane media hype; another important factor was Willy (the bot from Mt.Gox).
The price had bounced back. This is normal due to the fact that bubbles usually collapse. However we survived major hacks over time which kept on pushing the price downwards. We should be seeing a positive trend very soon as we've established a decent price at $200+.

[NUFCrichard]

I still remember this fairly clearly. That day, US Senate had a hearing and the price surged all the way to $900 before briefly crashing and China investors started to invest and accept Bitcoin then it surged past $1000. It was truly amazing I must say. Bitcoin was heavily regulated in China and it started to slide gradually. However, a few months later, Mt Gox became insolvent and the price crashed due to it being the largest exchange at that time and loss of confidence.

There definitely had not been a single 'day' that had an insane rise. It took the market almost 2 months to reach that price, before there were 2 huge dumps that brought it down.


The price had risen due to several factors. Bitcoin at that time had insane media hype; another important factor was Willy (the bot from Mt.Gox).
The price had bounced back. This is normal due to the fact that bubbles usually collapse. However we survived major hacks over time which kept on pushing the price downwards. We should be seeing a positive trend very soon as we've established a decent price at $200+.

Hope, bigger idiot, speculation, bots, Chinese exchanges etc are the reasons give for the rise.  It is impossible to say why exactly it went so crazy, it started after Silk Road went down though, so maybe people thought it would legitimize bitcoin and allow it to go mainstream.

The fall has been a realization that the market size and growth isn't as big as people thought. Adoption didn't increase enought with the price, so it fell.  Some whales also decided to get out at the top, which stopped any further rises.

[Wonka]

I still remember this fairly clearly. That day, US Senate had a hearing and the price surged all the way to $900 before briefly crashing and China investors started to invest and accept Bitcoin then it surged past $1000. It was truly amazing I must say. Bitcoin was heavily regulated in China and it started to slide gradually. However, a few months later, Mt Gox became insolvent and the price crashed due to it being the largest exchange at that time and loss of confidence.

The price had risen due to several factors. Bitcoin at that time had insane media hype; another important factor was Willy (the bot from Mt.Gox).
The price had bounced back. This is normal due to the fact that bubbles usually collapse. However we survived major hacks over time which kept on pushing the price downwards. We should be seeing a positive trend very soon as we've established a decent price at $200+.

Hope, bigger idiot, speculation, bots, Chinese exchanges etc are the reasons give for the rise.  It is impossible to say why exactly it went so crazy, it started after Silk Road went down though, so maybe people thought it would legitimize bitcoin and allow it to go mainstream.

The fall has been a realization that the market size and growth isn't as big as people thought. Adoption didn't increase enought with the price, so it fell.  Some whales also decided to get out at the top, which stopped any further rises.

I think the price rise was likely down to fradulent trades by bots on gox. It seems gox (or someone else) was actually trading with coins they didn't have and reaping the rewards and then when people tried to cash out they were shit outta look as they neother had the bitcoins or the cash.

[Lauda]

I think the price rise was likely down to fradulent trades by bots on gox. It seems gox (or someone else) was actually trading with coins they didn't have and reaping the rewards and then when people tried to cash out they were shit outta look as they neother had the bitcoins or the cash.

Willy was actually raising the price. However the problem with the missing Bitcoins is another story to tell. We can't really tell if someone from Gox took them or people who abused that alleged bug in their system.

Hope, bigger idiot, speculation, bots, Chinese exchanges etc are the reasons give for the rise.  It is impossible to say why exactly it went so crazy, it started after Silk Road went down though, so maybe people thought it would legitimize bitcoin and allow it to go mainstream.

The fall has been a realization that the market size and growth isn't as big as people thought. Adoption didn't increase enought with the price, so it fell.  Some whales also decided to get out at the top, which stopped any further rises.

One has to realize that the market was (is) being manipulated by the big players. Weak hands tend to be flushed out at a loss. If you've been here for a while, you would have seen a lot of people buying in at e.g. $1000, $800, $600, etc. and complaining that they are at a loss.  When did someone who holds a 4 digit number (or more) of Bitcoins come out and complain?
The market should naturally correct as we should have not gone down so low in the first place.

[bitnanigans]

Not a newb, but am a noob.

How did bitcoins rise so drastically???

Price manipulation, and hype, most likely.

[ikydesu]

Not a newb, but am a noob.

How did bitcoins rise so drastically???

Supply > Demand = Price Down
Supply < Demand = Price Rise

Why drastically? Most all because a whales, event which triggering the price down or rise, people who panic with the price crash and some party with their pump and dump plans.


~iki

[Karartma1]

1200 was big pump. It wasn't realistic value of Bitcoin. Now we are at the phase of normalisation. 250$ is quite reasonable price for 1 bitcoin.