Yesterday proved rather interesting for the digital currency markets, particularly as related to alt coins. While prices were mostly up on the day across the board, one particular dynamic stood out as noteworthy: a massive leap in LTC / USD was followed shortly thereafter by a similar climb in XBT / USD. We’ve written previously about the interaction of bitcoin and litecoin, noting that their trading indicates a strong relationship between the two (see here and here for further detail), but for litecoin to so visibly and dramatically lead trading is relatively unprecedented and largely unexpected. Bitcoin maintains a total …

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One week ago today, rumors began to hit the market of Chinese payment processors no longer being able to serve bitcoin exchanges. BTC China and OKCoin, the leading XBT / CNY exchanges by volume for much of the past few months, also reinstated trading fees on the same day. Those factors combined have led to reduced trading volume at those exchanges, as well as a glimpse into why bitcoin companies have attracted so much venture capital in 2013. On September 24, BTC China temporarily removed trading fees from their exchange. Bitcoin’s popularity in China ballooned dramatically shortly thereafter as other …

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Bitcoin markets have been roiled dramatically in the past two weeks by actions of the PBOC. Initial notice on December 5 stating that financial institutions would not be allowed to transact in bitcoin were followed by rumors that payment processors would no longer be able to serve bitcoin exchanges, which have since been validated. The result has been not only a dramatic drop in exchange rates – from $650 to as low as $400 earlier today – but also an historic spread between USD and CNY markets, reaching upwards of 30% this morning. This morning, BTC China and OKCoin temporarily …

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Bitcoin suffered a roughly 30% drop before recovering somewhat yesterday after word hit the market indicating Chinese regulators would no longer allow payment processors to serve bitcoin exchanges. Doubts about the validity of such statements have increased since their announcement, with little official word seen yet from regulators or payment companies. Incidentally, at least two of the largest CNY exchanges happened to drop their zero-fee trading on the same day, offering initial insight into how much free trading was bolstering the recent Chinese market presence. Yesterday morning, reports began surfacing on Chinese microblogging sites indicating the country’s top payment processing companies …

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This morning we launched a series of upgrades to our Market Dashboard. Your feedback has been crucial in prioritizing feature improvements and we hope you will continue to send us your thoughts at [email protected]. Additional Exchanges and Conversion Given the increasing distribution of global trading volume, the Market Dashboard now covers the four largest bitcoin exchanges including Bitstamp, Mt. Gox, BTC China and BTC-e. A 24-hour volume overview was added as well to help you stay abreast of shifting market liquidity. We’re in the process of adding even more exchanges – let us know what you’d like to see by …

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The recent run-up in bitcoin exchange rates and related volatility have created a number of tradable scenarios for thoughtful market participants. One less obvious effect of the dramatic price movement is the tightening of the cross-exchange price differential between Mt. Gox and Bitstamp, the leading USD bitcoin exchanges by volume. As we first pointed out in June, exchange rates at Mt. Gox and Bitstamp have diverged after Mt. Gox stopped servicing fiat withdrawals for many of its customers. For more background on the causes of this, see our previous research on the matter. More important for market participants at the …

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Update, October 24: The bitcoin markets experienced a dramatic price correction over the past few hours. As our readers are aware, the latest drop was in line with historical expectations. We pointed out yesterday that “maintaining 0.3 or greater price velocity for two or more consecutive days has historically been met with a significant correction shortly thereafter.” With the price climbing ~13% in the day since we published the original piece before tumbling over the past few hours, the graph below speaks for itself: Original Publication: Nearly all market participants are aware of the dramatic increase in the bitcoin exchange rate …

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The last week has seen dramatic upwards price action in the bitcoin markets, driven by a series of macro and micro events across the globe. The fallout from Silk Road’s closure turned out to be but a blip in bitcoin’s price history, with significant gains since then. Turmoil in global financial markets and recent news of leading global websites accepting bitcoin may have bolstered enthusiasm for digital currency, but most interesting may be CNY’s definitive recent price leadership. Compared with prices before the brief Silk Road drop, bitcoin exchange rates have climbed 14% in the last two weeks. At $145/BTC …

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Argentina’s currency troubles have been well documented for years. With inflation between 10 and 11% per year for most of the past decade, Argentinians have actively looked to subvert the country’s strict capital controls and obtain alternative stores of value. Historically, that has meant underground dealing in USD and EUR, but more recently has led to interest in the largely-unregulated world of bitcoin. BitPagos, a Latin American payment processing company in the latest class of the Boost.vc Accelerator, is capitalizing on that interest by adding bitcoin to their processing options. Argentinian interest in bitcoin is a natural evolution for much …

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Bitcoin’s growth in 2013 has accelerated tremendously, driven largely by economic concerns which bitcoin is uniquely positioned to solve. This has been evidenced so far this year by conditions in Cyprus, China and Argentina, and has highlighted bitcoin’s potential in less developed nations like Kenya as well. All of the countries listed above are known for high inflation rates, strict capital controls, or a combination of both – a scenario that is beginning to unfold in India. This analysis will address India’s current economic climate and the factors that would affect the population’s propensity to adopt bitcoin on a large …

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