BITCOIN PRICES PLUNGE ON ALL EXCHANGES Considering the recent accumulation of Bearish News:Bitcoin Vox Analysis Bitcoin VOX analysts downgrade again their recommendation to Bearish, as we do not see any Bullish news able to compensate the trend so far. If we identify some Bullish Trigger Events, we will advice you in real time and adjust our recommendation, so you can buy-in at a good price. In addition, right now we consider that some users have probably decided to leave Mt Gox for others Exchanges.
However, with Mt Gox it takes 3 weeks in average for non japanese residents to cash-in, when there is no issue (not the case apparently). Therefore, it might create some turbulences to the Bitcoin liquidity pool. Currently, we believe only some opportunistic purchases will limit the drop in the coming hours.
Thus, if you are long you may want to lighten your position and/or to consider some hedging either with Short Sales of BTC and/or with purchases of Short Contracts for Difference (CFD Leverage 10:1, monthly maturity). If you use Contract for Difference, always set up stop loss orders as they are extremely volatile, you do not want to face margin calls. Beside, you could also consider the opportunity to diversify a bit toward other digital coins.
UPDATE 7:22 AM GMT - Markets plungeAll Exchanges are plunging now, as Europe is starting to wake up, BitStamp and BTC-e have accelerated the Bearish pace. The news regarding the Russian Ban is spreading. We are currently contacting Russia's Official to have more details regarding their intentions, and the eventual delay before such a measure enters into force.
BTC Prices on Mt Gox is inferior to $730 as we write, and inferior to $700 on BitStamp and BTC-e.
Mt Gox uncertaintyAgain, early this morning in Japan the Mt Gox Bitcoin Price has started to fall tragically to a lowest of $750 from $830 yesterday. It is almost the same scenario than yesterday when the BTC dropped from $935 to $825 in only a few hours. The Exchange is paying a hard price for not having been able to resolve its withdrawal issues and keep the confidence of its users.
Mt Gox end of PremiumIndeed, Mt Gox price is particularly falling (-20% in two days) compared to other Exchanges as BitStamp, BTC-e and Huobi (about -9% in two days). The current premium between Mt Gox and BitStamp is now low as $30, against $80 yesterday and $140 this week-end.
Market DriversForce is to note that recently bad news have been accumulated on various fronts. First, additional Central Banks have issued Warning against Bitcoin.
In addition, in Russia Bitcoin might become banned in the country, as the Prosecutor General's Office concluded after meeting with the Central Bank, FSB, and Interior Ministry of Russia that:
"The use of bitcoins and other cryptocurrencies carries the risk of violating citizens’ property rights and cannot be used in Russia".
Secondly, western countries are in a Regulation Phase thus there is legal insecurity which has always a bearish effect. Furthermore, also due to the legal vacuum and some Silk Road side effects, several major Merchants have decided either to pause or stop involving in any type of relation with Bitcoin transactions :
- Apple removed the Blockchain Wallet from AppleStore (the last wallet app)
- Paypal is cracking down on Bitcoin Sellers (even mining items)
- CampBMX's Bank terminated its service with the Exchange last week, which raises a doubt as maybe other Banks might take the same measure
Bitcoin Vox Analysts
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