The Bitcoin price has plummeted by more than $60 or 12.5% this week. Just yesterday the Bitcoin price went from 450 USD per bitcoin to $407. It is currently trading at $400.98.
Ian Worrall from Sembro Development told CryptoCoin:
The Alibaba IPO has generated a lot of noise in the financial markets as the IPO date has drawn closer… The largest Bitcoin exchange by volume, BTC China, which covers an average of 38% of the total Bitcoin transactions has averaged around 19,000 Bitcoin per day in trades. …the volume is currently up over 52% at 29,400 Bitcoin and rising...On top of increased volume on Chinese exchanges, the volume on the European exchange platform Bitstamp is up well over 100% today at around 21,400 Bitcoin compared to the monthly average of 9,200 Bitcoin. This is right after many of the leading German analysts from renowned investment banks have indicated that Alibaba is a strong buy… Based on this information, we have concluded that many large Bitcoin investors from China and Europe have exited their positions in Bitcoin to put into the Alibaba IPO.
This makes sense to me. A lot of money in Bitcoin is hot money, with a Chinese flavor. The hot money play is now China-based Alibaba, not Bitcoin.
In fact, before reading the above quote from Worrall, but after Alibaba started trading, I went to check the Bitcoin price, which I hadn't checked in some time, to see if it was down on the Alibaba IPO.
-RW
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