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Talk About VOLATILITY: Bitcoin Hits $2806, Then Plunges Nearly $500 To $2346 Before Stabilizing At $2568, Up 4% On The Day

by SGT, SGT Report:

Well this Bitcoin thing is not for the faint of heart, particularly if you got in today for the first time at the new intraday all-time high of $2,806. Shortly thereafter the crypto cliff dived nearly $500 to $2,346 before bouncing back half way to $2,568. The grandaddy of cryptos finished up 4% on the day. One wonders if today’s action counts as fulfillment of Clif High’s web bot prediction of a huge correction in Bitcoin, before resuming its march to $10,000 and beyond. We kinda doubt it. More volatility is likely dead ahead.

Clif High’s web bot data has long predicted the current run up in Bitcoin, actually the current run to $2,806 over shot Clif’s prediction of around $2,300. At that point the web bot data was indicating a huge correction, possibly taking Bitcoin back down to $1,500 or even lower, before bouncing back to $2,300 and then on to $10,000 in coming years.

The web bot data also indicates a continuing run higher for Ethereum (ETH). Ethereum now enjoys the second largest market cap in the crypto currency space with $17 billion in total market value VS Bitcoin’s $40 billion. The interest in Ethereum has propelled the crypto 1,453% higher over the past year. During the same period, Bitcoin increased 453% in value. A who’s who of some of the world’s largest corporations are interested in the Ethereum blockchain.

Recall that in February JPMorgan, Intel, Microsoft and others formed a Blockchain Alliance. In total, some 30 companies announced the formation of the Enterprise Ethereum Alliance, which according to Zero Hedge “will create a standard version of the Ethereum software that businesses around the world can use to track data and financial contracts.”

Zero Hedge continues, for those who are new to Ethereum and are curious about the distinctions between that technology and bitcoin, below is a quick primer courtesy of CryptoCompare:

1. In Ethereum the block time is set to 14 to 15 seconds compared to Bitcoins 10 minutes. This allows for faster transaction times. Ethereum does this by using the Ghost protocol.

2. Ethereum has a slightly different economic model than Bitcoin – Bitcoin block rewards halve every 4 years whilst Ethereum releases the same amount of Ether each year ad infinitum.

3. Ethereum has a different method for costing transactions depending on their computational complexity, bandwidth use and storage needs. Bitcoin transactions compete equally with each other. This is called Gas in Ethereum and is limited per block whilst in Bitcoin, it is limited by the block size.

4. Ethereum has its own Turing complete internal code… a Turing-complete code means that given enough computing power and enough time… anything can be calculated. With Bitcoin, there is not this form of flexibility.

5. Ethereum was crowd funded whilst Bitcoin was released and early miners own most of the coins that will ever be mined. With Ethereum 50% of the coins will be owned by miners in year five.

6. Ethereum discourages centralised pool mining through its Ghost protocol rewarding stale blocks. There is no advantage to being in a pool in terms of block propagation.

7. Ethereum uses a memory hard hashing algorithm called Ethash that mitigates against the use of ASICS and encourages decentralised mining by individuals using their GPU’s.

Ethereum appears to be poised for big things long term, so perhaps the action in ETH is more than just fly by night tulip bubble.

SILVER

Unfortunately for silver bugs, the web bot predictions have not been nearly as accurate for the white metal. The most manipulated commodity on earth is silver, and with billions of ounces of paper silver thrown at the market via the Comex every year, silver has been brutally tied down, unable to soar like the cryptos. It’s a bitter pill for precious metals investors, particularly since Bitcoin and Ethereum have soared only higher day after day for months. And even worse, the web bot data has indicated time and time again that silver was set to soar many times its current price of $17.08.  Time will tell, but we remain hopeful that one day silver will see a real world price north of $600, it’s a price that has come up in web bot data often, and one that could be perfectly plausible if and when the Comex and international bank manipulation of the precious metal is finally brought to an end.

Please share your thoughts below. What do you think is the near term and long term outlook for Bitcoin, Ethereum and silver? And while we’re at it, for anyone who is interested in LiteCoin and DASH, or any other cryptos, please give us your thoughts as well. This is an important economic sea change and story that will continue to evolve and unfold for years to come.

image credit: coindesk.com

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57 comments to Talk About VOLATILITY: Bitcoin Hits $2806, Then Plunges Nearly $500 To $2346 Before Stabilizing At $2568, Up 4% On The Day

  • Eric

    As far as the “other cryptos” go, Gold AND Silver are money and NOTHING ELSE!

    • dan w

      I’m confused. They didn’t take the money.

      • Eric

        You mean if I go out to a drive through restaurant like taco bell and order toxic garbage from somebody who doesn’t know anything about money, currency, finance, economics, and has never ever heard of bitcoin either they won’t sell me a taco salad?

        Gold price averaged $836.50 in 2007. Gold price in 2017 – $1255.00. A 50% rise in price.

        What was the price of bitcoin 10 years ago again?

        • dan w

          “Don’t be retarded. If btc was money, you could buy groceries with it.”

          you mean if i go to a grocery store and buy some gmo’d garabage from somebody who doesn’t know anything about money, currency, finance, economics, and has never ever heard of palladium either they won’t sell me a loaf of bread?

          • Eric

            No. And maybe you know of a grocery store in your area that accepts bitcoin.

            But where I live, in a city of over 18 million people, nobody will accept bitcoin for a loaf of bread.

            Many will accept Gold and Silver.

            • dan w

              Nice choice of words. Out of 18 million people. Many with accept gold and silver, No one accepts bitcoin. I’ll call bullshit and leave it at that.

              • Eric

                Words have meaning. It’s best to use them correctly.

                You are entitled to have your opinion and your perception.

                It’s probably because westerners and Americans still don’t know anything about money, while in Los Angeles the foreigners have an appreciation for real tangible wealth.

      • Eric

        If all you guys care about is the price of shit, I suggest you convert to Judaism.

        You can count shekels and pennies all day long while telling yourself you will have 2800 slaves someday.

  • mike

    BTC has been in the cliff correction since $1900..Even in the correction phase it’s been going up as I stated about a week ago…Only btc is money nothing else and each btc will eventually have purchasing power of millions of oz’s of gold.

    Anyway nice vid Eric..Your in good company with lindsey graham..You would think he would just ask his CIA buddy Brennan what BTC was since the cia created btc?

  • Kevin

    Christ at least it’s doing SOMETHING compared to other assets. I believe this is a brief pull back as it’s done in the past then it’s only going higher as Clif High said.

  • fonestar

    fonestar is tired!

    It’s been a 16 hour day and I’ve driven 400 miles. But I am NEVER too tired to fight for my beloved Bitcoin with any of you mongoloid half-wits!

    Want to know what free markets look like? They look like BITCOIN does right now…. a beacon of freedom in a morass of manipulation. Bitcoin can be “volatile”…. ooooh! Does that scare you pussies? Do you think the Dollar is non-volatile?

    We will never sell. We are HODL! We are not “trading” back and forth between fiat. We are moving into position for the kill shot. The “dollar” is our final prize.

  • videoctr

    Token Summit, today in New York City. Should create some more buzz and excitement. http://tokensummit.com/

  • chuck

    So we see BTC demonstrating its desirability world wide as compared to fiat Dollars, Yuan etc. The value in dollars though, will become meaningless when (or if) the world moves away from central bank fiat and into block chain crypto. What it will be worth at that point in trade for real goods and services is unknown.

    Interestingly, as we move toward technocracy and “third wave” associated technology, (Re: “The Third Wave” by Steve Case) we will find that precious metals will be among the most indispensable commodities on the planet. No cell phone, laptop, automobile, TV, or any other of the myriad of products in “the internet of things” will exist without silver and gold. Not even BTC. Then, I ask, which will be the real standard of value? Metal or Crypto?

    • fonestar

      It will probably be crypto. But you should see all the keyboards I have killed to get the silver circuit mylars out! Thousands of them!

    • Eric

      “I don’t trust anything with the name “crypto”. They might as well call it crypto-Jewish currency, although I guess you might figure it out if they did that.”

      http://mileswmathis.com/max.pdf

      Gold has been a “standard of value” for 5,000 years.

      Bitcoin has been a hot momentum trade for 9 years.

      your guess is as good as mine.

  • Craig Escaped Detroit

    Very interesting to watch this unfold. For or against it, it’s still fun.
    On the one hand, it’s a free-market, traded thing and TPTB don’t seem to have the power to control it.

    On the other hand, it’s not physical, hard money, but its use as currency is growing fast.

    We already know that it’s dependent upon the data grids, but so are the banking & swift systems and stock markets. If the data grids go down, it also takes all the stocks, bonds, checking accounts, MasterCard, Visa, and all the other “money systems” we have.

    With the various problems of slow transaction speed of BTC (up to several hours), and other issues, it seems logical that a faster transaction crypto is going to take the lead.
    I don’t know squat about the details & market penetration of the crypto’s to have any idea which ones may triumph. What seems sure today, can be compost in a year.

    I do look forward to the “volatility” of Au & Ag when they take the lead over fiat.

    I consider myself lucky to be living away from some of the devastated areas, such as Venezuela, where fresh eggs can cost more than $10 each.
    I was just at my local “Dollar Tree” and bought 18 medium eggs for ONE dollar (in Caracas this would be worth about $200 US). Wow!

    I’m gonna be ordering MORE bulk garden seeds (at some very good prices), and the seeds being sold here, the best prices are for the ones they sell as “sprouting seeds/ microgreens”.

    I’m gonna buy either a 1/2 pound or full pound of carrot seeds @ $7.55 per half pound.
    Amazing! (that’s enough to be equal to 224 packets of carrot seeds at the retail stores that sells packs for about $1.50 each! …. they usually contain no more than 1 gram per pack, and there’s about 28 grams per ounce.)
    http://seeds.toddsseeds.com/scarlet-nantes-carrot-seed/

    I’ve got a couple of those survival seed variety assortments, keeping them air-tight in the deep freeze, and the variety is wonderful, but the QUANTITIES are SMALL. I’ll have to plant them carefully and save seeds for later seasons.

    Having some main veggie seeds in bulk quantities, will allow you to LOSE a season and still have enough seeds for later years.

    Carrots, onions, broccoli, winter squash, cabbage, garlic, corn, turnips, beets, beans, lettuce and other things is good enough to survive quite well.

    OK you guys. Stock up on everything you think you’ll need, whether it’s BTC, PM’s, etc, we ALL need to eat. So even if you live in a HIGH RISE apartment with NO place to plant anything, you can STILL GROW the SPROUTING seeds in your home, or on the window sill, patio, balcony, etc, AND… seeds will probably become a very important barter item.

    • Craig Escaped Detroit

      PS. My neighbor brought up a VERY valid point about nations-in-crisis.

      There will ALWAYS be a BLACK MARKET distribution, trading and marketing system. Just look at Venezuela and any other nation where things are desperate. The black market thrives!!!

      Middle eastern nations have their arms markets. Every place on earth has a drug market.
      Food hungry nations have black market traders for food.

      During every financial crash, people still demand their drugs, booze and smokes. Making moonshine, growing tobacco or drug plants will be an important source of income for many people.

      Buying tobacco seeds is legal, as well as many other things.

      Get ready now, do some pre-planning and you may be very comfortable in the future with the money you might make as one of the black marketeers or suppliers of high demand products.

    • glitter 1

      My newly planted orchard,Apple,peach,pear,blueberries,fig trees planted within the last 1-1/2 yrs,are doing very nicely.I expect the fruit to begin coming in next year.My raised garden with tomatoes,peppers,romaine,cucumbers,bush beans,kale and patti pan are going gang busters.The name of the game is “organic”,organic composting.I no longer dump my grass clippings or leaves in he back woods,into the pile they go.My compost pile has become a night crawler factory.Also have strawberries and herbs in containers on the back deck.On those nice sunny days you can almost see/hear everything growing.
      Being in Northern Florida,your season started a couple months sooner and lasts a little longer,which is nice.I would love to be able to grow citrus trees,but I have to work with what I have.

  • Videoctr

    Do a job search at indeed.com and type in the word ethereum. Lots of action in this new technology space. I would not say that this is a tulip mania, there is big money supporting the development

    • fonestar

      Yes… all of the “bad guys” are supporting Ethereum. And Ethereum is INFLATIONARY!

      There will never be a limit to the amount of Ethereum produced! Bitcoin was modeled after gold… LIMITED/DEFLATIONARY.

      Funny that SGT and Tyler Durden never mention that?? I mean that’s a pretty HUGE difference between Bitcoin and Ethereum!!

      • Eric

        For the 400th time… Bitcoin is NOT deflationary. It is DIS-inflationary.

        The supply is always increasing at a slower rate.

        Learn the difference!

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