Post Silk Road closure rebound levels are the new normal… at least on the Japanese exchange
Yesterday’s vague statement by Mt Gox that has fully discouraged Bitcoin traders on the Japanese exchange has triggered somewhat of a capitulation on the Bitcoin market. Prices have tanked just above post Silk Road closure levels around $91.50 and have recovered somewhat to trade at $142 as of writing. As the Bitcoin bubble seems to be breathing out its last sips of air (at least on the Japanese exchange) there is no telling what could happen next.
While prices at BTC-e and BitStamp are hovering just below the $600 mark the credibility in the digital currency has slumped to levels unseen since the Silk Road debacle. While the biggest strengths of Bitcoin are its decentralized nature and the anonymity of transactions, these could eventually prove to lead to its demise. As of right now it’s all in the hands of the community and we are seeing one encouraging sign out there – mining goes on.
If you look at the mining difficulty data on https://bitcoin.sipa.be/ difficulty has continued to go up throughout the February debacle which is a sign that if there is someone that is still trusting the digital currency – the mining community. We have to emphasize that it is a costly process since it consumes a lot of electricity, so the faith of current Bitcoin hunters is that they can still recover their costs from the endeavor.
Stay tuned to LeapRate as the story continues to unfold and as the last breath of Mt Gox is drawing closer day by day.