So is Bitcoinica to blame for all these dramatic selloffs today?

[CombustibleLemon]

The big selloffs seem to be occurring during this fee free time period for Bitcoinica.

I'm thinking a few people decided to dip their toes into Bitcoinica because of the no fee thing, and then got force liquidated on a small market drop while they were playing with 10:1 leverage.  This could have created several unfortunate snowball effects in a row.

I understand that correlation is not causation but this seems too good an explanation.

Could this be right?  Or am I not understanding something about Bitcoinica. 

[StewartJ]

If it's Bitcoinica causing all these cheap Bitcoins at < $6.20, send them my thanks !

[sgbett]

It's no small coincidence that Iran was in the news today. It must be that.

[Cluster2k]

I saw the Bitconica announcement posted on Bitcointalk after the volatility started, not before. Unless a lot of users suddenly signed on, fed their accounts and then proceeded to lose it all I would suggest new Bitcoinica users were not at fault.

Having said that, playing with Bitcoinica is kinda like playing with nitroglycerin.  It's great fun, but has a tendency to blow up at random moments even in careful hands.  I'm happy to stay away from the Bitconica casino and use my own money for trading.

[cypherdoc]

Gold is not doing well.  Bitcoin anyone?

[StewartJ]

Gold is not doing well.  Bitcoin anyone?

Keep on stacking that Digital.

(Still trying to figure out how to get 100 ounces of silver inside my thumb drive)