Putting the first Bitcoin bubble into context

[hazek]

I was wondering, do people realize just how crazy and obvious the first Bitcoin bubble was?

Take a look at this:

Code:

Timestamp		Open	High	Low	Close	Volume (BTC)	Volume (Currency) Weighted Price
2011-05-31 00:00:00	8.8	9.4998	8.1	8.741	45794.43	406882.27	8.88
2011-06-01 00:00:00	8.741	9.6987	8.3	9.57	43479.96	400564.35	9.21
2011-06-02 00:00:00	9.57	10.888	9.5	10.6	41047.27	415112.72	10.11
2011-06-03 00:00:00	10.6	14.499	10.5752	14.29	72980.24	954513.54	13.08
2011-06-04 00:00:00	14.29	18.89	14.04	18.89	44475.34	729670.85	16.41
2011-06-05 00:00:00	18.89	18.998	16.2	16.7	24278.97	420612.47	17.32
2011-06-06 00:00:00	16.7	19.23	16.4513	18.5499	55092.47	1016927.39	18.46
2011-06-07 00:00:00	18.5499	24.32	18.26	23.9234	53715.04	1068903.32	19.9
2011-06-08 00:00:00	23.9234	31.9099	22.2135	29.6	104925.16	2858820.38	27.25
2011-06-09 00:00:00	29.6	31.5	26.151	28.919	62933.66	1861589.64	29.58
2011-06-10 00:00:00	28.919	29.399	20.01	23.9497	92208.2		2274786.4	24.67
2011-06-11 00:00:00	23.9497	23.99	13	14.6511	121869.97	2146587.96	17.61
2011-06-12 00:00:00	14.6511	24.99	10.25	18.5464	151194.16	2451134.56	16.21
2011-06-13 00:00:00	18.5464	24.5	16	19.84	73421.79	1476239.59	20.11
2011-06-14 00:00:00	19.84	20.5	18.001	19.28	36155.99	696003.98	19.25
2011-06-15 00:00:00	19.28	20	19.022	19.49	27711.9		545336.14	19.68
2011-06-16 00:00:00	19.49	19.89	17	17	49202.14	927743.42	18.86
2011-06-17 00:00:00	17	18.34	13	15.681	108623.77	1684353.23	15.51
2011-06-18 00:00:00	15.681	16.9499	15.052	16.89	35536.55	569949.34	16.04
2011-06-19 00:00:00	16.89	18.8766	16.85	17.51	30176.74	536267.38	17.77

EDIT: hack happened on the 19th of June, after the last entry above

Watch the close price! In a matter of just 8 days we went from 8.741 to 29.6, which means the closing price more than tripled in just over a week. Well if this is a baseline, clearly we haven't again experienced something like it even with the recent price jump.

Don't misunderstand me, we still might be speeding a little bit right now but in the context of the first bubble I don't think we should worry all that much just yet.

What do you think using the first bubble as a baseline for this kind of thought?

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[smoothie]

I agree that price movements currently are no where near a "bubble". Looks like a solid base and we will back and fill from here slowly and rise slowly as we approach block reward halving and possibly network hashrate increase.

[cbeast]

I'm not sure what the point of this thread is. The first bubble was people like me that went wtf is Bitcoin? I gonna get me some! A few saavy speculators played pump-n-dump to take advantage of us. Little do they know that the last laugh is on them, because I now know what Bitcoin is and the speculators that thought it was a fad are now saying wtf. There will be more bubbles, but they will always find a higher floor.

[ElectricMucus]

I'm not sure what the point of this thread is. The first bubble was people like me that went wtf is Bitcoin? I gonna get me some! A few saavy speculators played pump-n-dump to take advantage of us. Little do they know that the last laugh is on them, because I now know what Bitcoin is and the speculators that thought it was a fad are now saying wtf. There will be more bubbles, but they will always find a higher floor.

But it could take a loooog time.

Don't believe me? Take a look at the historic silver charts!
The 1980 silver bubble had several echos too... I'm not saying that it will be this way with bitcoin, but it could.

[bb113]

Putting bitcoin volatility in context, Mystery chart:



The x axis is determined by a rough estimation of how often "the coin gets flipped".

[Vladimir]

If you discount about one week of "irrational exuberance" the price went up only to 15-17$ level, and this is not that crazy. Or at least not such a huge bubble as many think it is.

Now if you take into consideration all those bitcoins "printed" over time and chart total market cap, the chart looks much, much healthier.

Chances are we will see prices above that again before long, it's just an easy double from here.

[organofcorti]

Putting bitcoin volatility in context, Mystery chart:



The x axis is determined by a rough estimation of how often "the coin gets flipped".

Can you explain in a bit more detail, bitcoinbitcoin113? I'm intrigued.

[istar]

This bubble was popped only because MTgox was hacked.

Which made lots of people think that Bitcoin was hacked...And made them scared.

What would have happened if that would not have happened...$48 $64 $200 $300?

[damnek]

This bubble was popped only because MTgox was hacked.

Which made lots of people think that Bitcoin was hacked...And made them scared.

What would have happened if that would not have happened...$48 $64 $200 $300?

No. There was already a drop to ~$8 before they got hacked.

[Vandroiy]

Last year was crazy even for a bubble.

A classic bubble comes with a media hype and excited people who wouldn't normally speculate. Such speculation mania was a major factor in the case of Bitcoin. Everyone wanted BTC all of a sudden, without any idea what this type of speculation meant. Bitcoin exchanging degenerated into a "let's all get very rich very fast" scheme.

So, for the current movement... it might go up or down, but to call it a bubble we'd need some sort of additional reasoning besides a recent price rise. And it's true, the comparison is extreme. We're 40-50% up depending on what you compare with, in months. In last year's bubble, such stuff could happen in a single day.

[alan2here]

The bubble is a lie, zoom out guys.

Set the chart to use all data, for example daily, and to log scale.

See, an endless row of "bubbles".

Iv'e heard people reffering to such market movements as 'volitity'.

[notme]

The bubble is a lie, zoom out guys.

Set the chart to use all data, for example daily, and to log scale.

See, an endless row of "bubbles".

Iv'e heard people reffering to such market movements as 'volitity'.

Hold on to your britches, here come the log charts.

[ElectricMucus]

The bubble is a lie, zoom out guys.

Set the chart to use all data, for example daily, and to log scale.

See, an endless row of "bubbles".

Iv'e heard people reffering to such market movements as 'volitity'.

Hold on to your britches, here come the log charts.

[ribuck]

I was wondering, do people realize just how crazy and obvious the first Bitcoin bubble was?... In a matter of just 8 days we went from 8.741 to 29.6, which means the closing price more than tripled in just over a week...

What do you think using the first bubble as a baseline for this kind of thought?

Like all bubbles, it's easy to see with hindsight.

But before the first bubble, there were many times when the price more than doubled within 8 days. For example, the MtGox closing price went from $1.41 on 22 April 2011 to $3.50 on 30 April 2011, but that wasn't a bubble. It went from $3.33 on 5 May 2011 to $8.20 on 13 May 2011, but that was not a bubble. It went from $0.45 on 28 Jan 2011 to $0.92 on 5 Feb 2011, but that was not a bubble. (There are more examples).

I think you are right that the price tripled within 8 days only once. But at the time, how sure could anyone be that a tripling would be unsustainable when all the doublings had been sustainable?

Long term, you can say that more than 7% per week is unsustainable, but I don't think you can say anything about the short term, without the benefit of hindsight.

[cypherdoc]

Don't misunderstand me, we still might be speeding a little bit right now but in the context of the first bubble I don't think we should worry all that much just yet.

this is quite correct.  we just cleared the breakout zone and are heading up.

[hazek]

Never mind this thread because it was written with how the picture looked like when I wrote it but looking at the new picture now I changed my mind. Now it's starting to feel like a pump and dump is in the making. People owning BTC seem to have decided to hold on to them and it seems they will not sell until we clearly enter another down trend, I mean who would sell right now when there's this huge bid wall, right?

I now believe this is the start of a new bubble.

[notme]

Never mind this thread because it was written with how the picture looked like when I wrote it but looking at the new picture now I changed my mind. Now it's starting to feel like a pump and dump is in the making. People owning BTC seem to have decided to hold on to them and it seems they will not sell until we clearly enter another down trend, I mean who would sell right now when there's this huge ask bid wall, right?

I now believe this is the start of a new bubble.

FTFY

[cypherdoc]

Never mind this thread because it was written with how the picture looked like when I wrote it but looking at the new picture now I changed my mind. Now it's starting to feel like a pump and dump is in the making. People owning BTC seem to have decided to hold on to them and it seems they will not sell until we clearly enter another down trend, I mean who would sell right now when there's this huge ask wall, right?

I now believe this is the start of a new bubble.

i highlighted the keyword.  the move til' now has been slow and gradual and backed by fundamentals.  keep in mind that a bubble can last for a long time and go to heights never imagined.  so indeed, if this is the start, we could go go to $100 before it blows.

[hazek]

Ty notme, I can't believe I made that mistake.

[cheat_2_win]

I mean who would sell right now when there's this huge bid wall, right?

If recent history is any guide, walls can be taken down quite easily. And if we look at the bid depth without the huge bid wall, it is not so healthy.