Bitcoin price down, but why?

[rfisher1968]

I think the price is dropping to make all GPU miners think twice about mining. Meaning if the price drops far enough it will not be profitable to keep mining with a GPU.

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[Lethn]

You guys really need to stop worrying about every little price movement Bitcoin makes and be glad it's above £50/$70.

[bitleif]

I think the price is dropping to make all GPU miners think twice about mining. Meaning if the price drops far enough it will not be profitable to keep mining with a GPU.

Who decides the price? God?

You guys really need to stop worrying about every little price movement Bitcoin makes and be glad it's above £50/$70.

I'm not glad it's above $70

[morthandeus]

Why does prices vary in any direction? A good starting point to answer that would be price theory:

Economic theory asserts that in a free market economy the market price reflects interaction between supply and demand: the price is set so as to equate the quantity being supplied and that being demanded. In turn these quantities are determined by the marginal utility of the asset to different buyers and to different sellers. In reality, the price may be distorted by other factors, such as tax and other government regulations.

(from http://en.wikipedia.org/wiki/Price#Price_theory)

[gpudude]

You guys really need to stop worrying about every little price movement Bitcoin makes and be glad it's above £50/$70.

Couldn't agree more.

[Tadex]

Maybe silkroad cashout?

[schnebi]

I think, in the long run, the price will raise. Im not worried about the little ups and downs...

[bitsp]

silkroad is being held hostage apparently

[MassiveCollision]

Just one of the many growing pains episodes. Nothing to worry about, it'll most likely rise again and we'll surely see more of these kind of dips.

[Kluge]

I think the price is dropping to make all GPU miners think twice about mining. Meaning if the price drops far enough it will not be profitable to keep mining with a GPU.

Miners do not determine price. The amount of BTC they generate is insignificant at this point. Price determines amount of hashpower, definitely not the other way around. (JIC you were going on that train of thought -- not sure if you were)

GPU miners are in the worst spot, because the FPGA and ASICs sure aren't shutting down when price decreases. GPU miners are soon to be phased out of the market -- we're just waiting for more ASICs to ship.

As for why it's declined... no clue. I don't think anyone really thinks SR's down for the count, or even for a long period of time, so I don't think it's a reaction to that news. Bitcoin's an extremely speculative currency, and I think it's a bad idea to consider it "a long-term investment." I just bought a bunch, and I generally dislike holding many coins anymore, so I figure that's a decent indication to buy. With margin trading back on the rise, movements are going to start becoming more dramatic. When there's a small move, positions will be forced closed, creating a domino effect until they run into a bid/ask wall the orders can't chew down. For months after Bitcoinica shut down, there weren't very large competitors to fill the void, but that's changing, for better or worse. Incidentally, when people are force-liquidated out of loans they have with me on BFX, I take that as a good indication to take their old position, just at the new price (and since the loan closed, that money's released back to me to do just that!).

[ghezath]

the price comes from the market 

[defaced]

Why does prices vary in any direction? A good starting point to answer that would be price theory:

Economic theory asserts that in a free market economy the market price reflects interaction between supply and demand: the price is set so as to equate the quantity being supplied and that being demanded. In turn these quantities are determined by the marginal utility of the asset to different buyers and to different sellers. In reality, the price may be distorted by other factors, such as tax and other government regulations.

(from http://en.wikipedia.org/wiki/Price#Price_theory)

Ty kind sir for your insight. You are 100% correct.

[solidshotnosh]

I think the price is dropping to make all GPU miners think twice about mining. Meaning if the price drops far enough it will not be profitable to keep mining with a GPU.

Watch it for several days, it flucuates like this alot, it's not profitable with GPU anyway

[squishybearz]

it went from 130 to 104 in one day

[libertine]

my guess and I hope im right is that before janruary the price was like 10-20 dollars and it had bounced around this mark for years. im hoping it will slide steadily to this again or maybe just above 20-30 then slowly recover, maybe another bubble then. having prices this high so early on cant be good people will just mine, mine, mine. until theres none left. plus I don't have any btc and I want in but im scared to buy now because were in the aftermath of the bubble.

slow down bitcoin, nice and slowly.

[rockofclay]

my guess and I hope im right is that before janruary the price was like 10-20 dollars and it had bounced around this mark for years. im hoping it will slide steadily to this again or maybe just above 20-30 then slowly recover, maybe another bubble then. having prices this high so early on cant be good people will just mine, mine, mine. until theres none left. plus I don't have any btc and I want in but im scared to buy now because were in the aftermath of the bubble.

slow down bitcoin, nice and slowly.

I don't think you quite understand "difficulty". If more people are mining, difficulty goes up and the same amount of bitcoins get dished out. It makes it less profitable to mine, but it doesn't make it burn through all of the coins.

[Rampion]

having prices this high so early on cant be good people will just mine, mine, mine. until theres none left.

WTF are you talking about? Do you even understand Bitcoin?

[Trank]

Hi guys! I would like to remember you that usually, during week-ends and festive days, BTC value goes down because banks are closed, so wire transfers aren't executed. Is pretty normal during the International Workers' Day, BTC drop down... am I right?
I was expecting this trand!

Bye!

[BurtW]

having prices this high so early on cant be good people will just mine, mine, mine. until theres none left.

libertine:  I just wrote this up for another noob.  Please read it:

https://bitcointalk.org/index.php?topic=192266.msg1991776#msg1991776

[monocolor]

it has no value anyway