Why bitcoin price dropped ?

[marjamrob]

It seems that Bitcoin is like any other item based on demand, it goes up and down in price.

[noodlehead]

It seems that Bitcoin is like any other item based on demand, it goes up and down in price.

I never thought of that. Well I hope more people are in demand for it soon.

[marjamrob]

It seems that Bitcoin is like any other item based on demand, it goes up and down in price.

I never thought of that. Well I hope more people are in demand for it soon.

Look at Apple's stock. It was at one point over $600, it is now under $420 a share. Different factors affect it's price, just like that of bit coin.

[Rig4Coin]

I think ASICS miner did it.

[nobbynobbynoob]

OK I just joined in with the bears, emptied my wallet and sold all at ~73 USD on BTC-e. (Don't worry, the cold wallet's still intact - you'd have to pry that literally out of my dead hand.) Let's see if I can buy back at a lower price - either BTC or LTC - or whether I'll be left "holding the bag".

[bestmarketer004]

Because it was too high.

[bitcoin-ben]

We all know bitcoin has next to no real value in the real world with little to spend on and although we determine the price I think it's far too easy for people with a lot of money to play the bitcoin god and determine where it goes for us.

[greggMD]

It clearly dropped significantly (~30%) in the past two weeks, trying to play around with different time periods doesn't hide that fact.  the question here is why?  If there's no meaningful news, that doesn't say much for long term stability that the price can suddenly drop for no apparent reason.

Unless of course the exchange rate was over inflated two weeks ago and has simply returned to a sustainable value?

That is at least a reason.  so, following this approach, assuming the recent prices are an aboration and we now seeing a correction, where do you see the price falling to?  mid 40's? mid 30's?  longer term trend would suggest under 20.

 

Then I have to sell all my coins.

[pening]

Look at Apple's stock. It was at one point over $600, it is now under $420 a share. Different factors affect it's price, just like that of bit coin.

Here's the thing: usually with a significant price movement, up or down, you can find reasons behind them.  Apple has dropped in part due to profit taking, part due to corporate management changes, part due to lack of (visible) new product pipeline, part no longer the "it" stock.  all have varying degrees of impact.  

With the current Bitcoin exchange rate, there's no obvious explanation for recent price direction.  After blowing off a lot of froth from April, theres been a spell of steady price changes.  Then off a small cliff, for no apparent reason.

Of course, there *is* another side to this, as exchange rates are reflections of both sides strengths and weakness, it could be that mainstream currencies have improved their value...  any takers for that?

[noodlehead]

I really hope it goes up to over a $1,000 a coin soon. I would like t to go down to about $10 for a short time to buy a bunch first though, LOL.

[cowanjeffrey93]

Too many seller than buyers. That's the fact.

[Pirouline]

I'm kind of new to bitcoin so this may be kind of stupid to ask, how does the prices go up and down isn't there always gonna be the same amout of bitcoins?

[bitcoin44me]

I'm kind of new to bitcoin so this may be kind of stupid to ask, how does the prices go up and down isn't there always gonna be the same amout of bitcoins?

No, the amount of bitcoins is increasing every minutes (not every minute actually, ...).

[nobbynobbynoob]

I'm kind of new to bitcoin so this may be kind of stupid to ask, how does the prices go up and down isn't there always gonna be the same amout of bitcoins?

There is still some inflation, until the supply reaches just shy of BTC21 million in about 127 years' time. Even with a steady supply, price is determined by demand (bid versus ask volume) at the margins. If bitcoin is truly to gain traction, the long-term trend has to be very bullish of course. But Bitcoin can fail and its price can fall to zero.

[DannyHamilton]

I'm kind of new to bitcoin so this may be kind of stupid to ask, how does the prices go up and down isn't there always gonna be the same amout of bitcoins?

Bitcoins can become permanently lost if someone doesn't back up their wallet and their computer crashes.  So, while the bitcoins will continue to exist, they will have been removed from circulation and shouldn't have any effect on the exchange rate.  This can reduce the supply in circulation.

25 brand new bitcoins also come into existence every time a new block is added to the blockchain by a miner.  This happens approximately once every 10 minutes on average.  This can increase the supply in circulation.

In addition, people can further reduce the supply in circulation by taking bitcoins that they've received and storing them long term with no intent to use them.

Others who already have bitcoins in long term storage can increase the supply in circulation by changing their minds and using the bitcoins that they had originally intended not to use.

[Spaceman_Spiff]

I'm kind of new to bitcoin so this may be kind of stupid to ask, how does the prices go up and down isn't there always gonna be the same amout of bitcoins?

There is still some inflation, until the supply reaches just shy of BTC21 million in about 127 years' time. Even with a steady supply, price is determined by demand (bid versus ask volume) at the margins. If bitcoin is truly to gain traction, the long-term trend has to be very bullish of course. But Bitcoin can fail and its price can fall to zero.

This.  If more people want bitcoins from the fixed amount available, the price will rise.  If fewer people want them, the price will drop.

[Piotrsama]

Probably because ASIC miners are dumping btc like there's no tomorrow.

[Runescape]

More sellers then buyers is short answer to this

[ArthurBitcoin]

I think maybe the following 3 reasons adding up.

• Mt Gox usd withdraws resumed
• Less "buzz" about bitcoin lately because it's been awhile since the peak at 250
• Some ASIC miners might be in a rush to get the money they invested back, ie they're rushing to "ROI" them, and selling coins

What to do about it?
We need more users !
Buy USB "Block Eruptor" Miners from CanaryInTheMine.  Start mining with them, and try to sell them to tech savvy friends asap !

Here's the US Group buy thread from CanaryInTheMine...
https://bitcointalk.org/index.php?topic=251851.0[/color][/b]
Now get to it! 

[villanfonsDC]

Sellers did it.