Free Republic

Last September (when bitcoin was trading at $230) we said that "As China Scrambles To Enforce Capital Controls, This Is Great News For Bitcoin" and that it is only a matter of time before Chinese buyers figure out that in a world in which the freeflow of capital out of China is increasingly more suppressed and where physical gold is actively being stored in China but is next to impossible to get it out of the country, it is only a matter of time before bitcoin explodes as China's bubble berserk population scrambles to buy. One month ago, we showed...

As if Zhou Xiaochuan didn’t have enough to worry about, the central bank governor now has a bitcoin problem on his hands. In a new report, Goldman Sachs says the yuan is now used in 80 per cent of transactions into and out of the cyber currency, topping the US dollar, yen and euro. Given that the Communist Party’s highest priority is stability, and the rampant use of bitcoin represents nothing if not the opposite, it’s probably only a matter of time until Beijing tries to crack down. It wouldn’t be the first time. In December 2013 – at a...

The bitcoin bubble appears to have burst as a stepped series of price crashes are underway with the price currently standing at 1074 down form 1240 barely a day earlier. A clue to its future direction can be discerned from the unfolding technical price patterns, that just as I wrote wrote in the run up to the peak of the Bitcoin bubble with the price converging on USD 1250 that the market was primed to crash and all it was waiting for was any even marginally negative news to act as trigger for increasing waves of market panics as GREED...