Bitcoin to fall off cliff?

Clint 2017-11-29 16:55:37 UTC #61

Clint 2017-11-29 17:01:27 UTC #62

Finance Magnates article:

Excerpts:

"The relentless Bitcoin buying frenzy we are witnessing is starting to get some brokers providing crypto CFDs to retail traders worried. IG Group has shared with the FT for a recent piece that it is limiting its exposure to cryptocurrencies."

"With client demand driving brokers to take on more exposure on the long side, any sudden interruption in the market opens the floodgates to an SNB-style event. Remember how we highlighted in September 2014 an increasingly one-sided positioning from retail traders in EURCHF?"

"Mark November 2017 as the first time when you were officially warned about crypto volatility risks. I am pretty sure that it won’t be the last one."

Falstaff 2017-11-29 21:58:47 UTC #63

I think that's a bit unfair, seeing as this threads been going 6 weeks since "Bitcoin = 5000 nearly" days

Here is todays chart from IG showing a Daily range from 11500 to 8600 and back ! - So 3000 pips a day ?

Anyway thanks @Clint for showing that IG and others are looking for to back out of the market with their pants intact !

I particularly like the tactic employed by the other Bookie - of introducing overnight interest at 175%

It seems tht the cheapest and best way to trade Bitcoin is to actually buy some as it seems @Dennis3450 has done.

Seems to me that with the liquidity issue mentioned earlier in the thread withn regard to withdrawals when the price is DOWN, the Spread better copanies like IG , need to cover their bets and the only option seems to be purchases at coinbase, who will delay any sales in hard times, letting the price potentially drop through the floor and costing the "Bookmakers" huge amounts.

Given the model of "Ownership" which seems to be emerging, one has to wonder who exactly is the beneficiary of this meteoric rise in this instrument.

There is no doubt that some have made some money over the past year or so

So now some hold physical (Paper) Bitcoin in one of these "Accounts" others just spreadbet the instrument, which means teh Bookie has to hedge by buying physical (Paper) Bitcoin to underlie their short positions.

So we ave been informed that in a downside adjustment, liquidity seems to dry up and orders don't seem to get addressed for DAYS !

Given a "Crash" scenario - "Days" is ample time for the value of the paper currency's value to drop back to a dollar each !

Let's say for the moment that this were to play out and then gradually the congestion cleared and coinbase were forced to fill the back orders at "market" ?

If we assume the average "Sell price" they received for the units from the Bookies and individuals like our @Dennis3450 was $5000 and now they have to buy them back at $1 - Whose interest is it in to allow this particular rise to an inevitable end ?

[Edit - quite a few Spellings and minor typos in this post - can't be a**ed to go back and fix them all - sorry ! ]

Clint 2017-12-01 02:28:24 UTC #64

Another Finance Magnates article:

Excerpt:

"Deltastock is altering its margin requirements from 20 percent to 50 percent on the following symbols: BTC/USD, ETH/USD, BITCOINETN/se and ETHERETN/se. In addition, the company hiked margins on BCH/USD from 20% to 75%."

Notes:

BitcoinETN/se and EtherETN/se designate "exchange traded notes denominated in SEK" traded on the Nasdaq OMX Stockholm Exchange

BCH/USD is Bitcoin Cash denominated in USD

Falstaff 2017-12-01 02:50:49 UTC #65

Nice to see some analysts read "Babypips "

It's dead in the water isn't it ?

Get your money out NOW @Dennis3450 - if you can

Clint 2017-12-01 17:04:45 UTC #66

Not dead yet.

Dennis3450 2017-12-03 02:23:39 UTC #67

Why would I sell, the price is about to retake $11,000 and Litecoin has Topped $100 today. My only regret is investing in gold and silver, that investment has gone nowhere, while the same dollar investment in Bitcoin would have me up a million bucks

Dennis3450 2017-12-03 03:44:05 UTC #68

Bitcoin back above $11,000

Will we see 12 or 13 thousand by years end

Tracer88 2017-12-03 14:24:00 UTC #69

Wow! That's crazy. Do you own a bitcoin account, Clint?

Clint 2017-12-03 16:10:38 UTC #70

Yes, but I was late to the game.

Three months ago, I opened an account with Coinbase, and began a dollar-cost-averaging buying program. Each month I buy x-dollars worth of bitcoin.

As the bitcoin price rises, I am getting less bitcoin per purchase.

But, the logic of dollar-cost-averaging (in rising markets) is that, in a long-term savings program, average purchase price -- and therefore overall cost of ownership -- is minimized.

Clint 2017-12-03 18:36:07 UTC #71

What bubble?

Within a few years, the Bitcoin price will be: 1 Bit = $1

Currently, bitcoin is worth: 1 Bit = 1¢

It has a long way to go.

That's just my 2 Bits.

Falstaff 2017-12-03 18:45:43 UTC #72

Two hundred and seventy Billion Dollars ! -

Here's a link which some might find has a few parallels but not all of this tale is parallel - Those with holdings currently may wish to peruse it - or not !

http://www.devvy.com/pdf/biography_john_law.pdf

_"This marked the peak of the great adventure. Here is how the capital of the India _
_Company stood: Law had been manipulating the stock prices until the shares were selling at 5000. _
After the rout of the Antisystem and the capture of the national revenues they went up to 10,000 livres.
_ If a man had bought a share of the Company of the West at 500 livres in billets d’etat or 150 livres in _
money, he would now at 10,000 livres have a profit of 660 per cent. Before the bubble burst shares went to 18,000 livres. This was the financial part of the famous System of Law in operation. Now let us see what happened to it. ........"

The quote is copied and pasted from a pdf and my adjustment is not perfect.

A lot of people out there must be feeling very wealthy on the attributed gains of The cryptos recently

Dennis3450 2017-12-03 23:27:35 UTC #73

I am in total agreement Clint, Seeing how bitcoin is up 11 times this year and that is with negative action from governments, central banks, and Wall St. Plus there are few options for buying Bitcoin in the US. Where do you think the price goes if Bitcoin purchases are open to the customers of Merrill Lynch and Charles Swabb.

Even as a Bitcoin holder I never really thought 1 million dollar Bitcoin would ever happen, now I am rethinking that. and will be buying more aggressively in future dips

Falstaff 2017-12-03 23:42:32 UTC #74

Whatever the outcome this will be a learning experience

"This time it's different " ?

Why ?

Dennis3450 2017-12-04 00:13:46 UTC #75

More like a once in a lifetime experience, I am just glad I am not sitting on the sideline like I did for the gold and silver rush of the early 2000's

Clint 2017-12-04 20:09:50 UTC #76

Speaking of which, here's an article about the IRS crackdown on Coinbase --

https://www.theverge.com/platform/amp/2017/11/29/16717416/us-coinbase-irs-records

forexforexforex 2017-12-04 20:15:42 UTC #77

Partial victory in Coinbase's mind:

https://blog.coinbase.com/coinbase-obtains-partial-victory-over-irs-dac041db59a3

We are pleased to say Coinbase won a partial victory in court today. Although the Court did not completely quash the government summons compelling disclosure of certain customers’ records from the period 2013–2015 as we requested, we were proud to accomplish two important victories for our customers.

First, the government vastly narrowed the scope of its summons. The government’s own lawyers noted at the hearing that the IRS is not accustomed to having to fight for records in this context, and most companies just turn records over without going to court. Thanks to Coinbase’s efforts, more than 480,000 customers’ records were preserved from disclosure. This is a 97% reduction in the number of customers impacted by this summons.

Second, the quantity of data we must produce for the approximately 14,000 customers who remain in scope has been significantly reduced. In narrowing the scope of the summons, we are pleased that the Court acknowledged the privacy rights at stake in this matter.

eddieb 2017-12-04 22:27:56 UTC #78

Saw this Bitcoin story today. Strongly doubt its authentic, the guy doesn't seem too bothered

Dennis3450 2017-12-05 01:49:36 UTC #79

IRS action against Coinbase does not seem to have bothered Bitcoin all that much, Price is reading to take on $12,000

Tracer88 2017-12-05 05:00:29 UTC #80

Well, better late than never.

Goodluck mate!