It looks like selling off about 68,000 bitcoins on MTGox would result in about an $8.80 price but only on MTGox so if Tradehill has the same volume, double it. $8.80 really wouldn't scare me that much. I'd probably buy up a whole bunch after it leveled off for a bit
but there are technically 7.1 million coins in existence. I don't have any numbers for the last fear induced sell off but it possibly could have been more than 68,000. I just don't think so though. I mean maybe 68 people here have 1000 for example and would try and cash em out if they heard some bad enough news. That's conceivable. Or some company who accepts them or a small exchange that would instantly dump 10,000 or more instantly.
All that cascading sell off crap is just stupid because you don't ever sell low. If you were sitting on a pile of BTC with no intent to sell it and wake up and it's at like $7, you don't panic and sell it
It's like some quantum stuff, it's only a loss if you sell it. You pretend nothing happen and sit on them. In fact, double down and buy some more. Every time there's a dip and I buy some, I've never lost money on that deal if I'm patient enough. The only time you jump ship on a sinking investment is when you know it's artificially inflated already like gold prices right now for example. If gold start falling, it's not getting back that high for years and years and years. BTC, not so much.