Why is Bitcoin tanking this afternoon?

[joulesbeef]

none of the mybitcoin money has moved.

trade volume is way low. It isnt dumping causing the drop.

right now it doesnt look like too many people are willing to sell much lower.

It's the bad news, 17,000 lost in that bitcoin exchange, has got to have dishearten many and then mybitcoin as well.. thats just two kicks in the nuts. We'll survive this, but we need to quit having mega bad news. same thing would happen to any stock that had news as big and as bad as we had this week.

[Spacy]

I hope some miners quit now, because the profitability goes down 

[walidzohair]

It Will just keep going down. and expectations are below 5$ by the end of the year.

REASON:!?!?!

1) we have a lot of miners.
2) we have a lot of mining hoppers that jump in for a day with massive Giga Hash and then switch down till next difficulty.
3) we have few buyers if any.
4) Many people think BTC is overpriced right now.
5) Miners/Buyers entering the market rate is still way too high .although we have low prices and low profit margin (11$ compared to 31$ in the past) .

[BitcoinPorn]

I like how hackers, social engineers, and/or douchfags, have made the issue of over mining a non issue lol

[walidzohair]

I like how hackers, social engineers, and/or douchfags, have made the issue of over mining a non issue lol

Does that include Social porn stars ?

[BitcoinPorn]

Does that include Social porn stars ?

Vegetta and Jessie Kang/King or whoever are back?!?

[walidzohair]

Does that include Social porn stars ?

Vegetta and Jessie Kang/King or whoever are back?!?

YEs dude! i thougth you already knew it!

[joulesbeef]

17k BTC lost at the 3rd biggest exchange.

up to $1.3 million MIA with mybitcoin

gox has been acting odd, reminding us of their problems


why wouldnt it tank?

[STP]

Its possible the traders are just doing this. You just have to own enough coin to drive it down and then you buy back more than you sold since you got everyone to shake. Nobody wants to be a bag holder and these traders will prey on that. Just hold your coin and keep mining.

[Bitcoin_Silver_Supply]

8.7, that's quite the tank and it doesn't look to be over. I can't say I'm surprised but I do feel slightly bad for all the people who were buying at 13+ recently.

[Yuusha]

1) we have a lot of miners.
2) we have a lot of mining hoppers that jump in for a day with massive Giga Hash and then switch down till next difficulty.

Why would these have any effect at all?

[HideousBeastManGuy]

Miners account for the slow systematic decline we've seen over the last few weeks.  Money supply grows daily, plus a large amount of people are guaranteed to be sellers on a daily basis.  That downwards pressure has to be met by new buyers, and that just hasn't been happening.

Also, the large orders at prices like 8,9, 10 have all been removed from the 5 exchanges I track.  There was a wall of like 3k+ bitcoin bid at MtGox that poofed, which caused this drop.  10 had an absurdly large amount of bid volume as well that canceled shortly after 11 was breached.

[Phinnaeus Gage]

I think UABB has something to do with it and a new thread should be started to ferret out the why. Matthew is probably sleeping now so, by the time he wakes up, he'll never know that we were onto him because, by then, the link to that thread will well be on the second page--and hardly anybody ever goes there.

[joulesbeef]

lots of miners has little effect on price.. it does have an effect on people wanting to mine and mining profitability(somewhat) and the difficulty... the main effect miners can have on price is new miners that insist on dumping every coin they mine to recoup costs and old miners sitting on war chests cashing out.  The actual number of miners is meaningless.

 

we have a lot of mining hoppers that jump in for a day with massive Giga Hash and then switch down till next difficulty.

are you talking namecoin? otherwise you dont know how hopping works. The only time we take a break from bitcoin mining is when it is more profitable to mine namecoins which only happens a couple of days every few months, and from what I can see, it is an extreme minority of us that even bother hopping off bitcoin to namecoin. Most just say screw it and keep mining bitcoins.

Hoppers have exactly zero effect on price.

 Money supply does grow daily but dont make the common mistake in thinking the growth rate changes.. for the most part it is at 300 new coins every hour.. doesnt matter how many miners there are.. it is 300 coins every hour.

[Tasty Champa]

hahahaha, I can tell you exactly why and how it's happening.

give me a moment to let me find a thread I started a couple weeks ago.

[Tasty Champa]

here you go angelus.
https://bitcointalk.org/index.php?topic=30995.0

[Rob P.]

 guess LulzSec and Topiary need money for their legal defense fund.

Start reading at 241:  http://pastebin.com/EcNCwaEu

[compro01]

The explanation is simplier as anyone is guessing here. Price is based on supply and demand.

While every week 50.400 bitcoins are generated you need ca. 605.000$ coming into the market to keep the price stable at 12$.

If this does NOT happen, (which boviously doesnt) the price falls!


I am sure the price will continue to fall!

your number assumes that all miners immediately sell off their earnings.

[HideousBeastManGuy]

If you look at the last 2-3 weeks of charts it would heavily indicate that a good portion do sell off their earnings immediately.  While certainly not all, it doesn't take much to drive price down, and until today, it's only been a slow slide.

[Mjbmonetarymetals]

Made my first bitcoin trades during the last week or so , Had £340.00 in MyBitcoin as I was juggling money around while i was setting up an offline wallet(lesson learned) , then I made my second mistake by not moving the rest of the bitcoins I had made (priced between £8.26 to £7.98 each) out and into the britcoin exchange to cash out immediately , spent all day chasing the price down today, finally sold them as low as £6.88 each losing a further £120.00 or so on the exchange rate , (lesson learned).