Bitcoin Price Drops Below $450

Bitcoin Price 29 MAR

Glued to the charts in the past few days? We don’t blame you. While watching the price of bitcoin move so rapidly can be interesting, seeing it drop rapidly in a downward trend may have some investors at the edge of their seats.

We’re observing prices in USD sink below the $450 mark at Bitstamp, down a whopping 11 percent in the past twenty-four hours alone.

We saw the bitcoin price remain somewhat stable in the $500 range for a couple of days late last week, so the obvious question is: how much lower can it go?

As you’re aware, nobody knows. But many of us are in agreement that the downward trend can be attributed recent happenings in China.

Last week, news came out that the People’s Bank of China would be barring financial institutions in the country from getting involved with bitcoin exchanges, and thus, close the accounts of these exchanges (which include BTC China and Huobi).

Despite whether or not the claims are real, I didn’t report on them because they didn’t come from the mouth of the source (and given the amount of false news we’ve seen before for the sake of manipulating the markets, I’d rather not perpetuate until we get 100 percent confirmation).

Those reports didn’t stop investors from panicking, which of course, brought down the price.

Another report dated 29 March from Want China Times resounded the news that financial institutions would be forced to sever ties with bitcoin exchanges.

Where do you think the price of bitcoin goes from here? Do you agree that the price drop is attributed to China?

  • javier

    Of course that the rollercoaster that is the btc price couldnt stay calmed not even during a week and now the price is going down… its just part of it!
    if by every “bad” news (half of them rumors) there are 10 good news, with more companies accepting bitcoins, central banks learning about it and starting to define it, more apps that make awesome things, lots of investmens in startups, even mergers, etc… why the drop? China must be part of it, but for what I am seeing in my country, maybe there are other causes

    I think that many people is starting to use btc for the first time (as: spending them), coins that were bought at who-know-what-price (lets round at $100?) and those coins, the companies that are receiven them, are selling them right away (as expected!). If this users are not buying these bitcoins back to mantain the same number in their accounts, but just starting to spend btc that were an investment, then this could explain part of the price drop. right?
    cheers from latam!

  • bitsteve

    Well, this is Bitcoin. It could go down to somewhere in the 150-300 bucks range and then crack the 1000 USD mark again. While it would be desirable for BTC as a payment method to be more stable over the course of time, I don’t see this as a problem. Buy low, sell high. Or buy low, don’t sell. If you did buy at around 1100 USD (I sold some of my BTC then), you’re obviously a bit nervous now. Stay calm.

  • fred

    The value of bitcoin is defined by speculators, not by any notion of fair value. The bitcoin echanges facilitate speculation, and bitcoin is now behaving like a currency. The extreme moves are because of the very thin markets – a trade of 200 bitcoins alone can move the market by several percent.
    Speculators are like sheep – they all move in the same direction at the same time. So the combination of thin markets, and speculators all chasing the price in the same direction is causing the etreme moves to both the downside and the upside.

    • GEOMIL

      It’s called a marketplace, deal with it. I’m tired of having currency held in place by government controlled banks to keep populations happy; money should be market driven, not politics driven.

      • fred

        So you agree with me?

        • GEOMIL

          Well if you believe the potatoes sold at your local market are sold by “speculators” then yes. I don’t care for buzzwords.

          • fred

            so there are no speculators in bitcoin?

          • GEOMIL

            It’s a marketplace. The value goes up and down based upon changing circumstances. I don’t recognize buzzwords with negative connotations attached to them. If a rumour that Bitcoin is illegal in China drives the price down temporary that called changing market conditions. Unique for a currency since government took monopoly on money supply and based it upon debt instead of value, but it is not “speculation”.

          • fred

            Its a simple fact that some people will buy or sell simply to make money – that’s called speculation. There is nothing wrong with that, but it does affect the market. Speculation pushes prices to extreme highs and lows and is the reason for the massive volatility we are seeing.
            The converse of speculation is buying because you actually want the item, because you have a use for it – potatoes in your example.
            Rumors would not drive prices down without speculation, It’s the traders acting on the rumors
            that cause the price to move.

            For some reason, you have something against traders speculating on bitcoin – I don’t know why – traders are active in all markets.

          • truth

            Clearly Fred voted for Obama. No financial education, no concept of the value added by speculators, but comes here trying to teach his intuitive peasant logic.

          • fred

            Actually, you couldn’t be more wrong – I’m a libertarian, I have never voted in my life and have traded hundreds of billions of dollars in the currency markets.

          • Aliice

            to what point was the comment above?

          • GEOMIL

            Sorry I don’t buy that (no pun intended.) I don’t believe Bitcoin prices are purposely pushed in one direction or another only by buying or selling, market conditions (like whether or not the force monopolizers will allow its use) drive prices. That’s why price changes happen at certain times (Cyprus bank robbery, US hearings on the legality of Bitcoins.) If it was all “speculators” the price changes would be at arbitrary times.

          • fred

            you’re right, market conditions drive the prices, but it’s the response of traders to market conditions that moves the price – . Traders tend to be in it for the short term, with a close eye on the price, non traders tend to be in it for the long haul and will be less likely to trade in and out on economic news and events.

          • GEOMIL

            Again the fact that the prices change in tune with external events out of the hands of traders makes me believe you’re wrong. The idea of a small group of people controlling the value of our currency is something we’ve taken for granted, I think we need to start thinking a little differently now.

            “Speculators” didn’t ask the Cyprus government to commit legal bank theft. No Bitcoin owner could have changed prices like that event did, one completely out of their hands. The change ($80 roughly if I recall) is trivial today but is was a huge jump up at the time.

          • fred

            It’s easier than you think to change the price of bitcoin – a few hundred thousand dollars can move the market by $20 – it happens quite frequently.
            The price is set by trades, the same as in any market. purchases push the price up, and sales push it down.
            So when Cyprus happened, everyone sold at once, and pushed the price down.

          • GEOMIL

            I think you’re missing the point. You’re getting cause and effect back to front. It was the event that changed the price, not the buying/selling. If the order really was event -> trade -> price change it still doesn’t mean “speculators” can change the price on a whim.

            This whole “speculator” thing implies collusion that can change the price at any time, which you have to admit can’t be proven, doesn’t seem to be happening and doesn’t make a whole lot of sense, I’m simply pointing out that prices change with external events not internally colluding “speculators.”

          • fred

            Yes, I agree with you, the event causes the price change, however it’s effect is magnified by short term traders.
            I don’t believe that speculation implies collusion – however tens of thousands of traders can operate in concert simply by reacting to technical analysis of the price charts.
            It’s not just bitcoin that works in this way, all exchange tradable markets work like that, with the same volatility results.

          • GEOMIL

            So what? Money was always volatile before government took over and placed it in a slow downward trend instead. I don’t see anything wrong “volatile” money.

          • fred

            Historically real money (prior to 1913) was very stable.
            Money that is volatile is a huge problem, not many people can afford 10% swings in their net worth on a day to day basis, and it makes pricing things impossible.

          • GEOMIL
          • fred

            so you agree with me then?

          • GEOMIL

            I don’t agree that money is stable, even when governments try to control it. Money pegged to gold is as volatile as gold, money controlled by governments slide towards zero over time.

          • Aliice

            The marketplace goes up and down according to when the winklevoss bros pump and dump and oh when the IRS decides to tax it. Let me guess? Next year this cryptocurrency will be yesterdays hero when you have to pay tax which no drug dealers and money launderers want to do. Its yesterday’s hero already (for the tax evaders amongst us).
            Oh and it will be up to you to keep the records. Good luck with that when its so volatile. All that means is the IRS will be right and you wrong if you cant prove it.

          • GEOMIL

            Economics based on tired propaganda, claims that never materialize (Bitcoin will die soon, etc.) Come on, you’ve got to be able to better than that.

          • Chris

            Bitcoin wont die soon. But if all the speculators leave the market and sell up then it will be bearly worth $50

          • GEOMIL

            We have a psychic here. You don’t know what Bitcoin’s value will be next hour. And no, the people you call “speculators”, i.e. the Bitcoin marketplace won’t disappear. That doesn’t make a whole lot of sense does it?

      • JasonShankel

        So it should be market driven, but not keep people happy. That’s coherent.

        • GEOMIL

          I meant that politicians attempt to control the financial sector through a monopoly on money supply, the interest rate it’s lent to banks, massive regulations to ensure financiers behave the way they want and insane policies that make no market sense (like bazillion dollar bailouts during invertible fails, pumping trillions in worthless paper money into the economy) all to keep people happy and shield them from reality like children.

          I’m not quite sure where I was incoherent. I didn’t say I wanted to keep people happy (or unhappy) just keep money free of politics.

          • Aliice

            Keep money free of politics or government? If you object to the low interest rates and money printing of the centrak banks go after that and protest. Instead developing a black currency that think it can avoid tax without scrutiny – while everyone else not getting paid in cash cant really use it – then dont expect the rest of us who get paid and taxed to feel good about the cashies and drug dealers getting off scott free with monopoly black money huh?

          • GEOMIL

            What an obedient piece of human cattle you are! Nice to see you enjoy having the government steal your hard earned money. And this whole drug dealer, black market, blah, blah, blah thing is getting very old.

          • Aliice

            What a sucker you are. Bitcoin has a limited life because no government is going to tolerate a currency that allows people to avoid taxes or dealing illegal drugs or contraband and get away with it. They may be a little slow catching up but your freedom from government bitcoin will be regulated. So it should be. Why should other be carrying your tax bill you bludger?

          • GEOMIL

            Do you know how much harm the War on Drugs has done to the world? Gang warfare in Mexico courtesy of the War on Drugs has resulted in almost as much deaths as the Arab-Israeli conflict the media won’t shut up about. And it has only being going on for 8 years in contrast to that war’s 94:

            So maybe you should just shut up about drugs if you want to maintain the moral high ground?

          • Aliice

            Maybe you should just recognise that the battleground changed dramatically with Silk Road. Harm minimisation and decriminalisation of users is all fine and I agree with it. I dont agree with letting criminals multiply in online sites hidden by your precious little bitcoin. These sites are an ugly abomination and are causing overdose deaths to rise worldwide. Is that your outcome for ending the war on drugs? You make me sick. You have probably had the same argument for years and dont even sit down and think – hey the ground has shifted. Youth worldwide do not need these sites and bitcoin is enabling them to grow.

          • GEOMIL

            You’re a pathetic echo chamber for government propaganda. You have no brain of your own all you have to go by is what your government tells you. The United States has a larger prison population than the Soviet Gulag system had at its peak. That’s what you want? Oh but of course! People would die of overdoses if they weren’t being raped in prison. You are fucking scum. I wish the government gave its most loyal cattle the right to sacrifice themselves. People like you would no doubt voluntarily clean the gene pool for the rest of us.

          • Aliice

            You could try reading what I actually wrote above your silly comment.

          • GEOMIL

            Yeah I read it, Bitcoins = drugs (you’ve said that in pretty much every comment – a classic sign that you’re reciting propaganda rather than thinking), the government only works for the good of all of us, the war on Drugs is necessary and a fantastic success.

          • Aliice

            Er no you didnt read it. What did I say about decriminalisation for users? You just go on inventing ideas you think I have and keep talking your own propaganda to yourself

          • GEOMIL

            I have no idea what the hell you’re talking about. My view, the complete end of prohibition, is hardly one backed by mainstream propaganda. The view backed by propaganda is “drugs are bad. M’kay?” That’s the one you seem to be vomiting everywhere while ignoring my points (hundreds of thousands dead in gang warfare, orders of magnitude more than the dugs themselves kill, the government of “the Land of the Free” “helping” people by creating the largest prison population in human history.)

            Millions of deaths from alcohol, cigarettes and gang warfare courtesy of the War on Drugs are fabulous but just remember, drugs are bad. M’kay?

          • Aliice

            That is precisely my point. You “have no idea what I am talking about” so you make it up (put words ion my mouth). No I dont agree with criminalisation of users and jail. Now do you get that. I dont however agree with people setting up websites that sell 5000 to 15000 drugs online across the globe and get away with it it because Bitcoin the freedom currency cant be traced. And dont give me any bullshit about the blockchain being a public record. It may be but the bitcoin wallet is anonymous – so what point a public traceable record until it hits the wallet which is anonymous. End of the line, the wallet, means its anonymous and cant be traces. Ipso facto every crim scum dealer and tax avoider loves bitcoin. Surprise surprise and when the government regulates it as it should all you scum who want to avoid tax cry foul. Then you raise harm minimisation and legalisation and anti war on drugs crap to defend this shit piece of scum cryptocurrency.
            Oh right you want legalisation of drugs? Why? With these sites you already have it. Those millions of bitcoins the feds seized from Silk Road should be ploughed straight back into offering rewards for every smart geek on the planet totrack down the scum who run these sites. Then legalise drugs only after you shut this huge balck market down. Dont you get that MKAY? If you dont you are stupid.

          • Aliice

            Oh and it isnt government stealing your nice hard earned money. IF you want roads and school and freedom from anarchists roaming your neighbourhood when you sleep, them pay your bloody taxes and stop whinging. People like you who want no taxes really are weird. The rest of us like services and dont mind paying for organisation and infrastructure and protection from bullying anarchists like you who would see all infrastructure destroyed rather than part with a cent of your cash tax free income. Its you who bludge on the rest of us and want us to pay your tax bill.

          • GEOMIL

            I don’t know where you’re from but I’ll just assume America since then I can talk about the atrocious schools there. Americans leave schools, that look more like prisons than schools, as functional illiterates. I’m thinking that maybe breaking the government monopoly and giving parents a chance might be an option to consider?

            Same with all services that government has taken it upon itself to monopolize alongside violence the last 100 years. We private citizens who are capable of building silicon fabrication plants are perfectly capable of building tarmac roads. When we’re allowed to.

  • Anon Wibble

    Just buy in when it’s cheap. I think there’s a number of reasons for this. Including coinfloor opening up in the UK so now people can get btc for reasonable prices. To be honest, I expected the price to drop a bit when bitcoins became more available and easier to purchase. However i think in the long run, they are likely to go up again. It’s a bit annoying that so many people are starting up their own cryptocurrencies. It’s extremely harmful and actually counter productive to bitcoin’s development.

  • The Chinese are still buying Bitcoin. See:

  • Copper

    It seems to me that everyone is waiting for the same thing the new low to be set Ive been holding out for $400 and expect the price to climb back to around $500 and stable off for a while on the back of a buy back frenzy

  • Willem Dodds

    That’s why I’m heading for Dogecoin with my Bitcoins. Its much more stable due to its inflationary model, has greater popularity and growth potential. Bitcoin’s had its time in the spotlight. Move over, the Dogestar (syrius, is shining). In the words of Socrates. B(u)y the dog(e), I swear!

    “The Cretan king Rhadamanthus is said to have forbidden his subjects to swear by the gods, suggesting that they instead swear by the ram, the goose or the plane tree. Socrates favored the “Rhadamanthine” oath “by the dog”, with ‘the dog’ often interpreted as referring to the bright “Dog Star”, i.e., Sirius.”

    profitsee! Its a profitsee!

    • Snailman

      You can spam with your little sh*tcoin all around the internet and you will only make us giggle.
      If you are a liberal art student working a minimum wage job stuck with $80k in student debt, then yes- you might find dogecoin slighty fun, but it is in no way moving finance the way bitcoin does.

      Not saying it couldn’t go higher tho.. $30mm for a market cap seems incredibly low with so much stupidity in the world

  • Aliice

    Let me try better. Bitcoin is being regulated so suck it libertarians.

  • Mad Majkl

    The real main reason for this situation is still the fall of Mt GOX! And it will be the same or worse until situation about the gox will be somehow solved. Dont forget, it has been biggest BTC exchange, hundred of thousands gox customers lost faith in bitcoin!

  • Guest

    its a free market but if you dont use it its still going to be there. so used when needed by those who need it. like any tool. at its core the rest is built on this. so hang on long term speculate short term expect trouble ahead always and never risk your testicles.

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