25k coins bought, $10 jump

[wormbog]

Someone just bought 25,000 coins on Gox? Anyone got info to share?

[fcmatt]

They probably want to get their money out of gox and have no choice in the matter? Buy BTC and transfer out?

[wormbog]

Maybe, but I'd think anyone with that much money at stake would be working with Gox to get the money transferred our rather than taking a $250k haircut. Unless they have some inside info that Gox's collapse is imminent.

[phatsphere]

the proper question is not: how many are bought, but: how many are left?

[Hyena]

parabolic rise v2.0

[BitcoinAshley]

There are a lot of rich people who might want to get their cash out of Gox as the bank situation is iffy. The easiest way to do this - and no, it's not arranging a wire transfer and waiting 3 1/2 weeks - is to buy BTC and transfer it out.

Once these people transfer their BTC out of Gox to another exchange, you might assume, with your simple human mind, that they will immediately think, "Ok, time to sell it all back to USD now."
But come on now, they didn't get rich by making the least profitable decision at every opportunity - in fact, they do the opposite. Hence the richness. They think "Hey, me and all my rich buddies just boosted the price like crazy, just getting our BTC out. Might as well have some fun while we're at it. Mad profit$ yo!"

This is why we don't have Gox buys immediately translating to exactly the same volume of Bitstamp and CampBX sales, and why we have upward price movement. Even getting money out of Gox (via buying BTC and transferring) is just another way for the whales to make even more money.

And of course, it shows quite clearly the "intrinsic value" of BTC. If you have gold in a vault in Idaho and you're worried about seizure or lack of access, or even counterparty risk, you can't click a button and transfer it to a vault in BC or into your own vault. BTC has value specifically as a highly transportable medium of exchange that solves both the proof problem and the counterparty risk problem common with other moneys. Only downside is that it requires electronic infrastructure. In a post-apocalyptic world of rolling blackouts and EMPs it would only be of marginal utility, but would still function so long as the necessary infrastructure was available and functioning. But this is why most of us (hopefully) don't see cryptocurrency as "the one" solution to all the world's monetary troubles - it is just one of numerous, equally ingenious solutions.

[Peter Lambert]

Maybe, but I'd think anyone with that much money at stake would be working with Gox to get the money transferred our rather than taking a $250k haircut. Unless they have some inside info that Gox's collapse is imminent.

It is only a $250k haircut if they immediately sell at another exchange. If they move the coins to another exchange and just wait for the price to rise they could get out without losing any money.

[adamstgBit]

Maybe, but I'd think anyone with that much money at stake would be working with Gox to get the money transferred our rather than taking a $250k haircut. Unless they have some inside info that Gox's collapse is imminent.

It is only a $250k haircut if they immediately sell at another exchange. If they move the coins to another exchange and just wait for the price to rise they could get out without losing any money.

waiting a few weeks is just not risky enough is it. their no fun to be had.

[Carlton Banks]

None of this explains why Bitstamp, CampBX and btc-e all recorded the same magnitude jump simultaneously

[rampantparanoia]

None of this explains why Bitstamp, CampBX and btc-e all recorded the same magnitude jump simultaneously

Sorry dude, shouldn't you be doing this as the price goes up?

[Peter Lambert]

None of this explains why Bitstamp, CampBX and btc-e all recorded the same magnitude jump simultaneously

That is the way arbitrage works. The person who bought all those coins had to buy them from other people. Some of those people have fiat sitting at other exchanges. When their bitcoins are sold on Gox they buy the same number of coins at other exchanges at the lower price for an instant profit.

[Walsoraj]

None of this explains why Bitstamp, CampBX and btc-e all recorded the same magnitude jump simultaneously

Yes it does. Those are FOOLISH attempts at arbing. That crap is temporary and will come to an end soon. They will regret trying to arb

[Zubilica]

None of this explains why Bitstamp, CampBX and btc-e all recorded the same magnitude jump simultaneously

Arbitrage

[wormbog]

None of this explains why Bitstamp, CampBX and btc-e all recorded the same magnitude jump simultaneously

Yes it does. Those are FOOLISH attempts at arbing. That crap is temporary and will come to an end soon. They will regret trying to arb

Why is it foolish?

[Zubilica]

then this may be what cause the jump

http://www.coindesk.com/tradehill-halts-trading-due-to-iafcu-operational-and-regulatory-issues/

[MAbtc]

None of this explains why Bitstamp, CampBX and btc-e all recorded the same magnitude jump simultaneously

Yes it does. Those are FOOLISH attempts at arbing. That crap is temporary and will come to an end soon. They will regret trying to arb

Why is it foolish?

Are you unaware of Gox's problems?

I'm holding some coins right now, but I'm not feeling too good about it. Trying to figure out exit points... I don't think this price can be propped up for too long. No way I'm selling on Gox, though, even if I can take 12% profit right off the top.

[rampantparanoia]

I'm holding some coins right now, but I'm not feeling too good about it. Trying to figure out exit points... I don't think this price can be propped up for too long. No way I'm selling on Gox, though, even if I can take 12% profit right off the top.

I've reduced my footprint in BTC by nearly 75% during this rally based on similar feelings.

[adamstgBit]

then this may be what cause the jump

http://www.coindesk.com/tradehill-halts-trading-due-to-iafcu-operational-and-regulatory-issues/

lol its the bank itself in trouble?

[wormbog]

None of this explains why Bitstamp, CampBX and btc-e all recorded the same magnitude jump simultaneously

Yes it does. Those are FOOLISH attempts at arbing. That crap is temporary and will come to an end soon. They will regret trying to arb

Why is it foolish?

Are you unaware of Gox's problems?

Sure, that's what's causing the arb opportunity. That's doesn't mean it's foolish to take advantage of it.

[MAbtc]

None of this explains why Bitstamp, CampBX and btc-e all recorded the same magnitude jump simultaneously

Yes it does. Those are FOOLISH attempts at arbing. That crap is temporary and will come to an end soon. They will regret trying to arb

Why is it foolish?

Are you unaware of Gox's problems?

Sure, that's what's causing the arb opportunity. That's doesn't mean it's foolish to take advantage of it.

It's not foolish if you can afford to have your money in limbo for weeks or months at a time. Could definitely be worth it.

Or perhaps it is extremely foolish. We will only see in hindsight. It's prudent to recognize that Gox is a) losing massive market share, b) facing deepening regulatory/compliance issues across a plethora of jurisdictions, c) facing an unofficial banking blockade (this situation is eerily similar to the banking issues that crushed the online poker market) where banks would have to be beyond desperate to go anywhere near Gox, and d) that a significant portion of Gox's yearly revenue was recently seized (not frozen) by the US government -- which direction the USG heads from here is difficult to say. $5 million ain't no drop in the bucket.

The $2.1 million seizure on June 19 was one day before suspending US withdrawals. Right? Considering how massively incompetent Gox has been to date, I've become more open to the prospect that they made no prior contingency plans for USD payment processing (up to and including seizures). The amount of money they have kept sitting in US bank accounts is sickening.