Wednesday, June 12, 2013

Is PRISM Precipitating A Bitcoin Sell-Off?

John Biggs at Tech Crunch discusses:

Bitcoin has experienced a fairly massive drop in value over the weekend and into this week, moving from a peak of $118 on June 7 to a low of $89 on June 9. While precipitous drops and dizzying highs aren’t unusual for the cryptocurrency, BTC watchers are pointing to the PRISM and NSA leaks as a cause for this weekend’s massive dip.

The wonks at CoinDesk note that Sundays are usually slow for the market in general. On the ninth, however, the volume spiked past recent highs and the price dropped precipitously. The correlation between price and the PRISM news making the rounds this weekend – while not airtight – is at least plausible.

Bitcoin is controlled primarily by market sentiment. While a few big players can move the market a few notches, it’s clear that the currency does get hit with periodic storms related to attacks and, more important, news relating to privacy and finance.

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