just to reiterate and update Fridays action in the REAL economy of stocks, commods, and bonds which i'm sure most of you here don't follow as closely as i do:
1. stocks rallied big and broke up and out of a bear flag and look to rally for months.
2. US Treasury bonds continue to be sold off unleashing HUGES sums of USD's looking for a new home.
3. commodities like oil, gold, silver, and miners took off as well.
4. the USD took a big dump meaning leverage has returned to the markets in general. IOW, speculators are borrowing or shorting USD's to bid up investments of all kinds.
what professionals call this is the return of RISK ON. which means all speculative investments like Bitcoin go back on the table and are targets of speculative froth. its not surprising to me that we're seeing this 50% rally right now. it makes total sense. if you believe in Bitcoin, you should buy it now b/c there are plenty of others right behind you. and they don't just come from the smallish Bitcoin community that we have here and that most of you assume are the only players in this space.
that huge bid wall thats following the price up is REAL.
How long is this going to go on? Do you believe in the European plan? I am asking honestly - probably nobody believes the plan, but still the market rallies.
the move out of US Treasuries is a game changer. everyone knows the biggest debtor of all, the US of A can never pay back its debts. if you look at the daily price chart of TLT its done a perfect double top after a huge run up in anticipation of Operation Twist. it was a headfake and now all that money from the biggest bond bubble in history is flowing out looking for risk on plays, mainly in equities. the US Treasury market is the largest on earth and the biggest in history, dwarfing the stock market. alot of these USD's will go into currencies.
hedge funds, professional investors, banks all look at the potential investments on the table; stocks, bonds, commods, oil, gold/silver, miners, Bitcoin. investors usually ask themselves whats overpriced, underpriced, cheap, expensive, overbought, oversold, etc.
i can easily see professional investors looking over the table:
Q: whats this over here, Bitcoin? i thought it was done?
A: no, still hanging around.
Q: didn't it get hacked?
A: the exchange did but the source code didn't.
Q: is Gavin still around?
Q: how about those other guys, Stefan Thomas, Amir Taaki, and Jeff Garzik?
A: they're still there too.
Q: God, i thought they would've given up by now if Bitcoin really was a ponzi.
Q: any improvements in security?
A: tons. consumers are now protected by encryption and mtgox hasn't suffered another attack.
? how much is it now?
Q: you're kidding. didn't you say it acts like gold? a limited supply?
Q: well, our gold/silver plays aren't doing so well.
A: lets pour a few million into Bitcoin. its oversold and maybe we can get a short squeeze going.