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Bitcoin Collapses Following Silk Road Shutdown

MTGOX:BTCUSD   Bitcoin / U.S. Dollar
1429 16 19
Today the FBI seized and shut down Silk Road, a website that allowed customers to buy illegal drugs using Bitcoin . As part of the bust, the government took 26,000 Bitcoins , or the equivalent of about $3.2 million, from Silk Road.

Following the news, Bitcoin's value began to collapse.

Here's a chart that shows Bitcoin's collapse today. You can see where exactly where the Silk Road news hits.
www.tradingview.com :)
ShortThePlanet
3 years ago
Bitcoin is not only drugs
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Zephir
3 years ago
Do not overvalue Silk Road. Most of the bitcoin users never ever used Silk Road or any service like that.
This small collapse mostly comes from daytraders which sold high after reading the news yesterday, in the hope to get a cheaper entry point.
April was a real collapse. This one just shows how "small" Silk Road really was in the btc economy.
Some bitcoiners argued all the time the last years, if Silk Road gets busted, then btc is dead. And now nothing really bad happened.
This is a day to celebrate, the badest argument against btc is now gone.
Cheers!
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Hawkeye
3 years ago
Would love to see the news that the 26k btc were destroyed (making the left over ones more rare, more valuable)
I also expect the big investor types to rethink their drops since now BTC is cleaner and less problems to sell to their upstanding customers
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I do think US Dollar will reverse before things get settled with recent news. So in effect this will be a double whammy, and bring bitcoin down lower.
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sublimares2
3 years ago
snapshot
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TheSleepyTrader
3 years ago
Price recovered very rapidly - Look at the volumes. When SR was taken offline, massive selling (most likely SR dealers cashing out their coins) but at the $109/110 there was enormous support almost the same volume as people selling. Further evidence that $100-110 is a very strong support level.

As other people have said this is now priced in I expect we will hover around the $125 mark before returning the bullish trend; the fundamentals are still sound and valid. SR was a small although visible part of the Bitcoin economy but not all of it.

There is a good chance of a large increase if the US debt ceiling is breached!
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BitHermes TheSleepyTrader
3 years ago
very good comment! if US debt limit touched, expect massive interest for BTC
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Xin
3 years ago
Bitcoin is not like a regular currency nor equity as there are no real assets behind it, circulation/purpose drives value - having lost a source of this Bitcoin will decline - diehard followers probably won't like this but should probably pause anyway and think there are those with even more coins than them that will want to elevate the posture to dissolve their positions. Combine this with numerous regulatory bodies investingating it's use is a concern for high volatility and chance of even larger devaluations.
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robocoin
3 years ago
We all like volatility. Everday we look out for mindblowing (or margin calling) bars like that :D Anyways, I expect it to to retest that insane low. But i'd be more afraid of losing out on upcomming bars of similar magnitude, the green ones.
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MrCheek
3 years ago
Has anyone considered the possibility that this sell off was the US government liquidating the seized SilkRoad BTC wallets?
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ArticMine
3 years ago
Short term this has been bearish. Medium to long term this is very positive for the BTC/USD price. The impact of this raid has been highly overblown not the least by the FBI itself and the media. Tranlating 9million BTC of illegal activity between January 2011 and now into 1.2 Biliion USD by using todays prices is just as rediculous as using a price of say 0.32 USD per BTC in January 2011 and getting instead 2.9 million instead.
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Algokid PRO
3 years ago
The future of BITCOIN is bright and Rosy. Venture Capitalist firms like Andreessen Horowitz are investing MILLIONS in Bitcoins startups. There 's a bitcoin ETF coming by Q1 2014. It will be the currency of choice for online shoppers. Shopping anonymously online is good everyone, no need to put your private info online. I can't believe companies like VISA or MasterCard are not jumping on this yet ....
Reply
Boom!
+1 Reply
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