Bitfinex laid an egg. Of course, Wells Fargo Bank did all the heavy breathing. And, then the price explodes to an all time high. But... it's not real. In fact, it's price discovery chaos all over bitcoin world. Let's dig a little deeper.
I have been reporting for months and months that there is a war going on between the PBoC and the Chinese bitcoin exchanges. They shut down withdrawals into the Yuan under the guise of preventing crime. You see, only governments can be criminal... legally. Then Xi eats chocolate cake with the Trumpster and magically the war expands to the "Peoples Bank of USA", aka Wells Fargo.
The price discovery chaos is because the bank battles have been scattered and not uniform. Therefore investors at various exchanges are reacting differently.
Should we collectively panic? Some think this is a Bitfinex solvency issue and they are running for the exits. This will subside if Bitfinex is telling the truth about their solvency. Will the war spread? BTC-e and BitStamp are reporting fiat transfer problems in a different way but the timeline is the same. So yes, the war is spreading. Is this the end of the world?
I remember the day when the easiest way to get bitcoin was to meet a stranger at Starbucks and exchange a wad of cash over a laptop. We can go back to that. They can't stop us.
When and where is the price of bitcoin going? Look at the volume line on Bitfinex. We are seeing a huge divergence between price and volume. This ends badly for the buy and hold crowd. Price will plummet dramatically when demand drops due to A: all of the investors running for the exits have exited or B: Bifinex solves the fiat transfer problem. So I look at the situation as no more than panic buying in a blow-off top scenario.
I remain Neutral on BTC because I cannot tell you when these events will happen. The price will continue to rise until it happens and then tank.
I have been reporting for months and months that there is a war going on between the PBoC and the Chinese bitcoin exchanges. They shut down withdrawals into the Yuan under the guise of preventing crime. You see, only governments can be criminal... legally. Then Xi eats chocolate cake with the Trumpster and magically the war expands to the "Peoples Bank of USA", aka Wells Fargo.
The price discovery chaos is because the bank battles have been scattered and not uniform. Therefore investors at various exchanges are reacting differently.
Should we collectively panic? Some think this is a Bitfinex solvency issue and they are running for the exits. This will subside if Bitfinex is telling the truth about their solvency. Will the war spread? BTC-e and BitStamp are reporting fiat transfer problems in a different way but the timeline is the same. So yes, the war is spreading. Is this the end of the world?
I remember the day when the easiest way to get bitcoin was to meet a stranger at Starbucks and exchange a wad of cash over a laptop. We can go back to that. They can't stop us.
When and where is the price of bitcoin going? Look at the volume line on Bitfinex. We are seeing a huge divergence between price and volume. This ends badly for the buy and hold crowd. Price will plummet dramatically when demand drops due to A: all of the investors running for the exits have exited or B: Bifinex solves the fiat transfer problem. So I look at the situation as no more than panic buying in a blow-off top scenario.
I remain Neutral on BTC because I cannot tell you when these events will happen. The price will continue to rise until it happens and then tank.
