The spec money in China has exited

[R2Pleasent]

One question:  How did China get back to $500?

I think at this point, anyone who didn't panic sell on BTC China has a nice opportunity to arbitrage.  They are likely buying coins in China, with whatever RMB they have left on the site, and bringing it over to other exchanges.  Also, others may be depositing BTC onto the exchange assuming that the price will tank.  By having an RMB balance, you could buy coins later @ a very discounted rate.

[humanitee]

One question:  How did China get back to $500?

I'll answer your question with a question: Why did it ever get so low to begin with?

So you answer a question that makes people think with one that's obvious to everyone?  What's the point of that?

It's not obvious to everyone, it's not obvious at all. Bitcoin will become more scarce within the country, it's still not outright banned, and it can still be used for remittances very easily. Who wants to sell it $200 cheaper than other exchanges? Idiots, that's who.

[Lloydie]

One question:  How did China get back to $500?

I'll answer your question with a question: Why did it ever get so low to begin with?

So you answer a question that makes people think with one that's obvious to everyone?  What's the point of that?

It's not obvious to everyone, it's not obvious at all. Bitcoin will become more scarce within the country, it's still not outright banned, and it can still be used for remittances very easily. Who wants to sell it $200 cheaper than other exchanges? Idiots, that's who.

This is a good point. People are starting to realise they don't have to necessarily convert to RMB. We should expect to see arb opportunities narrow.

[MatTheCat]

You are both fairly new here so it's understandable. There is a hardcore number of people here who are so utterly brainwashed that any drop is ALWAYS met with shouts of CHEAP COINS.Your mistake is believing these fuckwits know what they are talking about, they don't.

Unfortunately MatTheCat has gone full-retard and turned into the exact opposite of these fuckwits and he is now ironically doing the EXACT SAME THING.

The truth is somewhere in the middle. There is nothing to be gained by either of these two extremes.

Ok..I have checked your post history.....

Your last posts before today were 22nd June 2013, so you can't have been one of those who have been 'lol-ing' me all the way down from $1000, when I first stated that I was selling at a loss because I believed the market was going lower....much lower.

Last brutal correction, I caught sweetly. This one, I badly mistimed.

I am pissed off, and will reassess my position to Bitcoin when my mood straightens out. That Stochastic indicator in the image I posted however, is something I have had my eye on for a long time, back 24 hours even, when everything was still running to plan, my plan, of much lower prices to come, with me taking advantage of the bounces. That long term RSI is pointed vetically towards the floor. Sure it might pick up, but in light of everything that is surrounding Bitcoin at the moment; if there was ever a time that it was destined to hit the floor, which it has done many times before and with exceptional rigour right after a boom/bust, then that time lies straight ahead.

If it doesn't come to pass, I miss out on a little bit of upside and re-enter market at stabilisation point (lets face it, btc aint going 2 da moon again for quite some time). If it does come to pass, I miss out on a whole lot of downside and get presented with much sweeter buy-in opportunities.

[dancupid]

One question:  How did China get back to $500?

I think at this point, anyone who didn't panic sell on BTC China has a nice opportunity to arbitrage.  They are likely buying coins in China, with whatever RMB they have left on the site, and bringing it over to other exchanges.  Also, others may be depositing BTC onto the exchange assuming that the price will tank.  By having an RMB balance, you could buy coins later @ a very discounted rate.

I had 14000rmb on btc china (wish I'd had more) - I bought some bitcoins.
Why do I need to sell them suddenly?
Bitcoins are a rare commodity now in China - Chinese people are excluded from a world wide phenomenon.
My Bitcoins are worth more now in China than they are in the rest of the world.
If anyone wants them then they will need to pay a premium (off exchange obviously)

[Lloydie]

One question:  How did China get back to $500?

I think at this point, anyone who didn't panic sell on BTC China has a nice opportunity to arbitrage.  They are likely buying coins in China, with whatever RMB they have left on the site, and bringing it over to other exchanges.  Also, others may be depositing BTC onto the exchange assuming that the price will tank.  By having an RMB balance, you could buy coins later @ a very discounted rate.

I had 14000rmb on btc china (wish I'd had more) - I bought some bitcoins.
Why do I need to sell them suddenly?
Bitcoins are a rare commodity now in China - Chinese people are excluded from a world wide phenomenon.
My Bitcoins are worth more now in China than they are in the rest of the world.
If anyone wants them then they will need to pay a premium (off exchange obviously)

Yes, I can see Argentina scenario playing out in china. Btc will eventually trade at a premium compared to ROW.

[gizmoh]

One question:  How did China get back to $500?

In btc world, there is always a panic buying after a panic selling

[MatTheCat]

I had 14000rmb on btc china (wish I'd had more) - I bought some bitcoins.
Why do I need to sell them suddenly?
Bitcoins are a rare commodity now in China - Chinese people are excluded from a world wide phenomenon.
My Bitcoins are worth more now in China than they are in the rest of the world.
If anyone wants them then they will need to pay a premium (off exchange obviously)

Just one problem with that.

U can't spend em in China. U soon won't be able to exchange them for money in China. Which means that if you want to 'cash out', you will have to do so on a foreign exchange. Great, if you don't live in China, not so great if you do, as I hear that China is not an easy economy for the average Joe to get fiat in and out off.

[dancupid]

I had 14000rmb on btc china (wish I'd had more) - I bought some bitcoins.
Why do I need to sell them suddenly?
Bitcoins are a rare commodity now in China - Chinese people are excluded from a world wide phenomenon.
My Bitcoins are worth more now in China than they are in the rest of the world.
If anyone wants them then they will need to pay a premium (off exchange obviously)

Just one problem with that.

U can't spend em in China. U soon won't be able to exchange them for money in China. Which means that if you want to 'cash out', you will have to do so on a foreign exchange. Great, if you don't live in China, not so great if you do, as I hear that China is not an easy economy for the average Joe to get fiat in and out off.

Why can't I spend them?
'these carrots look lovely - will you accept bitcoin? - yes I will'
easy

(I do live in China)

[dontek]

My gut is, China is f*cking with everyone and purposely driving the price down so that day-traders and speculators get out, so that they can turn around and scoop up BTC for ridiculous low amounts and then drive the price back up.

[dg2010]

Ok..I have checked your post history.....

Your last posts before today were 22nd June 2013, so you can't have been one of those who have been 'lol-ing' me all the way down from $1000, when I first stated that I was selling at a loss because I believed the market was going lower....much lower.

I don't participate that much but I do read this forum on a regular basis.

And nothing is black and white. Selling out at $1000 was a great move. I didn't go with my first instinct and I waited and I ended up getting out around $900.

[dontek]

Just one problem with that.

U can't spend em in China. U soon won't be able to exchange them for money in China. Which means that if you want to 'cash out', you will have to do so on a foreign exchange. Great, if you don't live in China, not so great if you do, as I hear that China is not an easy economy for the average Joe to get fiat in and out off.

You do realize that China is the #1 foreign country that is buying up land left and right in countries like the US and all over Europe, yes?

Mr. Wong wants to buy a house in Seattle.
Buy BTC in China for $300k. Transfer BTC to US. Convert in US. Buy house.

BIT-ZILLA!!!!!

[reannypleas]

My gut is, China is f*cking with everyone and purposely driving the price down so that day-traders and speculators get out, so that they can turn around and scoop up BTC for ridiculous low amounts and then drive the price back up.

You mean China exchange or China government ?

[dontek]

My gut is, China is f*cking with everyone and purposely driving the price down so that day-traders and speculators get out, so that they can turn around and scoop up BTC for ridiculous low amounts and then drive the price back up.

You mean China exchange or China government ?

Chinese Govt + Banks + Big Business.

Don't trust the Chinese. They aren't stupid. They are great at deception and manipulation.

[dontek]

“Deception is an integral element of Chinese strategic culture”

[sgbett]

“Deception is an integral element of Chinese strategic culture”

Agree, the naivety on this forum is disturbing. If all participants in the global economy are working towards peace and harmony for the greater good then nobody has anything to worry about. If (and I would tend towards this) govts are competing then the gravest error would be to underestimate the opposition. That way lies certain ruin.

[sgbett]

In pool playing parlance they call it being hustled.

In poker, if you don't know who the fish at the table is...

etc etc

[Lloydie]

My gut is, China is f*cking with everyone and purposely driving the price down so that day-traders and speculators get out, so that they can turn around and scoop up BTC for ridiculous low amounts and then drive the price back up.

You mean China exchange or China government ?

Chinese Govt + Banks + Big Business.

Don't trust the Chinese. They aren't stupid. They are great at deception and manipulation.

The volatility over the past few days is certainly uncomfortable but I can't see that this is a trust issue. This is the Chinese government shutting down a massive loophole in its financial system.

[Lloydie]

In pool playing parlance they call it being hustled.

In poker, if you don't know who the fish at the table is...

etc etc

Let's avoid making Btc price drops a personal matter. It's a market with a diverse range of views.

[Lloydie]

Given that china is still trading at a discount, there could be some further selling pressure in china. However, given lower volumes, this indicates that some Btc holders are resigned to the fact they have been caught out and are now converting to long term holding.

Please add your insights.