Current price ~$850... any reason for it to be going down?

[Hfertig]

I have a simpler and quicker explanation for why the price is going down: it was and still is in a gigantic bubble.
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I do like efficient people... !

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[EverettMarm]

Another reason is that Bitcoin is inflating at 3600 coins per day, approximately $3 million dollars worth at $850.

[zuckerant]

I partly cashed out, spent some money for christmas, some for me and wait with the rest for drops. I guess I'm not the only one.

I expect a drop like on last weekend or even deeper. I got burned too often with buy high, sell low and waiting for a further drop that didn't happen before I buy in again. 

More action will maybe happen after new year.

[windjc]

Another reason is that Bitcoin is inflating at 3600 coins per day, approximately $3 million dollars worth at $850.

Most newly mined coins are sold off exchanges.

[tunctioncloud]

Well is it BTC really worth more than $850 right now??? or was it way over speculated before.

I doubt now is BTC really worth $850, it is currently overvalued because Bitcoin is not much actually used. It migh change, but now the Bitcoin price is just speculation it happens later...

[scotjam]

With all the good news this week (below) I'm surprised we are at $850... I'm planning to buy some more right now but I'm wondering if we are falling into another dip for some reason?

Any thoughts?



Good new form this week:

I think this entire week was full of good news, the 5 main ones that come to mind in no particular order:
1. Switzerland voting to make BTC a foreign currency
2. Baidu (china's yahoo) adding a section for bitcoin in their main page
3. http://www.usatoday.com/ adding a bitcoin logo on their main page (their high traffic, along with baidu's will definitely help increase awareness)
4. News about WallStreet and hedge funds getting into bitcoins in 2014
5. Fidelity allowing customers put bitcoins in IRAs

I wouldn't use any of your listed items. I think the most positive news so far is Andreessen investing $25 million in Coinbase. Anyone who is shouting "Ponzi/Pyramid scheme" will have a hard time explaining that. The other positive news I've seen is that the number of merchants accepting bitcoin is skyrocketing, so it is very likely that bitcoin will see its real mainstream breakthrough in 2014, but it requires the wallet functionality to be a little bit more user-friendly (even though blockchain.info is a great start).

So why is the price going down? Here are some reasons I speculate on:

1) The Chinese are still hesitant as the PBoC gave a clear statement that bitcoin is very risky and financial institutions in China should not invest in them. This warning spills over to regular individuals, so the buying pressure from East is greatly reduced and if the selling pressure is the same the price goes down.

2) Early adopters may cash some bitcoins out for X-mas. The volume is quite low, and selling 1k of coins (which is nothing for an early adopter) can cause the price go down quite a bit because the buying power is low. Long-term this is a good thing. The more bitcoins that come into circulation, the better.

3) Europe banking authority said it was going to issue a warning against bitcoin (and now it has done so publicly). This will reduce the number of investors going into the field. For them is a sane thing to do, because I believe that most politicians don't understand exactly how Bitcoin works, and anything that you don't understand it is just common sense to be skeptical. I still think they are wrong, but bitcoin requires maturity. Many were skeptical to Internet when Internet was young as well.

4) Then it could also be speculators/price manipulators selling bitcoin en masse to create panic and then vacuum all the cheap bitcoins.

Furthermore, the OP's point about Baidu was factually incorrect by the time he / she posted it: http://www.bloomberg.com/news/2013-12-07/baidu-stops-accepting-bitcoins-after-china-ban.html (dated 7 December)

[adamstgBit]

we are up like 10,000% longs need to cover.

don't panic, this drop is sure to shake out some weak hands and create a nice buying opportunity.

[goxed]

we are up like 10,000% longs need to cover.

don't panic, this drop is sure to shake out some weak hands and create a nice buying opportunity.

hope so

[Domrada]

I think probably a lot of people are selling "just a little" for christmas shopping.

[jamesc760]

I think probably a lot of people are selling "just a little" for christmas shopping.

Yes, I did sell a bit of my coins for Christmas shopping, as I'm sure many of you did.

[pand70]

I think this entire week was full of good news, the 5 main ones that come to mind in no particular order:
1. Switzerland voting to make BTC a foreign currency
2. Baidu (china's yahoo) adding a section for bitcoin in their main page
3. http://www.usatoday.com/ adding a bitcoin logo on their main page (their high traffic, along with baidu's will definitely help increase awareness)
4. News about WallStreet and hedge funds getting into bitcoins in 2014
5. Fidelity allowing customers put bitcoins in IRAs

You may want to add to those very real reasons that

6. USA officially declared bitcoin as a currency
7. EU already replacing euros with bitcoins

 

[Ailure]

I'm actually going to gift BTC to family for christmas. I wouldn't really care if they turn it to fiat right away, if it spreads awareness I'm happy. Sure money might be a bit boring gift, but it's hard to shop the right presents for my family.

I don't think we will see mtgox hit the high of 1242 USD for awhile. However it seems like that whenever BTC dips, it winds up bouncing up next day as people buy up "cheap" coins. And people who have been holding BTC for awhile have already cashed out, they did that in November according to the "BTC days" destroyed graphs and it didn't stop the value from going up. However they might spring into action of the price spikes up again. At the moment I feel the price will be stable, or worst case there be temporary dips but longterm slow if maybe somewhat slowly going down in value as it corrects itself.

There been two correction events during this rally, but neither "popped" the bubble. However I say that if we see BTC suddenly rise up to 1300+ USD again soon (within 3 months), it wouldn't be sustainable.

(Looking at charts, there is way more buy orders than sell orders. I'm not sure if this is currently a good sign, or if it's meaningless for the volatility of BTC)

[TERA]

It goes down because there are more sellers than buyers.

[JimboToronto]

I think probably a lot of people are selling "just a little" for christmas shopping.

Yes, I did sell a bit of my coins for Christmas shopping, as I'm sure many of you did.

I'm doing the opposite, buying coins for Xmas presents. I don't want to touch my paper wallets.

Bitcoin- the gift that keeps giving.

[EvilPanda]

BTC is going up in the long run. People are usually short sighted and tend to overreact. BTC lost a lot in the past week so people converted to fiat and wait for it to go down more so they can buy back. If it doesn't they will eventually buy back anyway. Just be patient.

[CMMPro]

Another reason is that Bitcoin is inflating at 3600 coins per day, approximately $3 million dollars worth at $850.

Most newly mined coins are sold off exchanges.

Or not at all...I'm not selling anything significant that I mine.

[vokain]

denial phase

[CMMPro]

So fresh and original.

Never heard that one before...now if only we had an infographic to post.

[EvilPanda]

denial phase

Or maybe returning confidence 

[freakying99]

Another reason is that Bitcoin is inflating at 3600 coins per day, approximately $3 million dollars worth at $850.

Most newly mined coins are sold off exchanges.

I doubt, I dont sell the coins I mine, mining is just different way of buying Bitcoins