It’s no secret that bitcoin’s exchange rate has been inflated due to media attention, leading many to believe that there’s been a speculative bubble. While it’s impossible to tell what the true rate of a bitcoin should be, there is evidence that the increased attention has now subsided, yet bitcoin’s exchange rate continues to increase. Google Google trends uses an index to determine relative search volume for a specific term, with 100 being the peak. From early March until mid-April, we saw a nearly 10x increase in search volume. By the end of may, this large increase has nearly subsided …
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So it turns out traditional markets aren’t as stable as everyone thought. The S&P 500 – an index of the 500 largest companies listed on the New York Stock Exchange – dropped 13 points in a matter of seconds earlier today as a result of a hacked AP twitter account. The tweet in question described an explosion that allegedly injured the president. The flash crash was the equivalent of over $100 billion in market cap disappearing almost instantly. For all of the concerns with bitcoin’s price instability, this would have evaporated 100x the bitcoin market cap due to a vulnerability …
Read More →Running of the Bulls The resistance at 95 turned out to be exactly the catalyst we expected it to be. The Mt. Gox DDoS slowed volume and delayed the break-out, but as we noted yesterday via twitter while it was happening, there were still strong signs of bullish sentiment. Contrary to prior DDoS attacks, the market remained largely unfazed and used the opportunity to take a breather from the aggressive swings that have characterized the last few days. The 95 level quickly turned into support, further confirming the market was prepared for a breakout. Bitcoin looks to have put in a solid double …
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