Bitcoins Burst

This history of speculative, frothy markets peaking precisely on new moons, with examples such as the Northern Trust panic of May 1901, the 1929 U.S. stock market top, and the 1987 stock market top now includes Bitcoin, the alternative 'virtual' currency that moved to parabolic prices in recent weeks.  Yesterday's eclipsed new moon saw prices peak at $266. per bitcoin about 5 hours after the eclipse. The rest, as they say, is history.


click chart to enlarge

About an hour after I screen grabbed that chart, the Mt GOX exchange that handles 80% of volume closed for 10 hours in order for markets to "cool off."  Right now, on other exchanges that remain open, bitcoins are going for about $65.   That's a loss of 75% in less than 36 hours.  I expect bitcoins to be back in single digits within a few weeks.

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