Friday, September 19, 2014

Popular online: Chinese Killing Bitcoin's Price (really, guys? really?)


AntiChinese Theory #1: Alibaba IPO Sucked Them Away!

The price of bitcoin has plummeted in the past few days, and some are blaming the Alibaba IPO for the virtual currency's fall.

Touching as low as $381.17 earlier Friday, bitcoin is trading at a far cry from its position around $513 less than a month ago or nearly $650 in July. And while the cryptocurrency has been languishing for several weeks, it's seen an increasing slide from Monday's open around $470.


AntiChinese Theory #2: Too Many Chinese Miners!
Bitcoin is getting hammered, marking the culmination of a rather gloomy summer in the market for the digital currency. After a 7.35% fall on Thursday, it is now down another 6% since that overnight close and has traded Friday at its lowest level since April, according to Coindesk’s Bitcoin Price Index.

The clearest explanation for this latest collapse is more technical than fundamental: essentially, there’s been an absence of big new buyers over the past three months, which has given sellers an excessive impact on the price. It is now down more than 30% since June 19 and while the decline has been more gradual, it is now running into automated triggers that are exacerbating the slide. Other fundamental explanations are offered up as well, the most interesting theory being that Chinese bitcoin miners are dumping the digital currency for dollars.
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