Bitcoin is back to its volatile old self.The cryptocurrency’s price plunged more than 20% in three hours of trading today (Jan.5), a dramatic correction that occurred within minutes of its nearly hitting an all-time high.The crash was so swift that at one point Bitcoin lost more than $3 billion in market value in just 40 minutes, slashing its “market capitalization”—the value of all the bitcoin in circulation—to $14.6 billion from $17.7 billion, a drop of about 17.5%.The price has since recovered somewhat; bitcoin is currently trading around $950, versus $1,100 just before the crash.The current price is around the same level as a week ago, but more than double what it was at this time last year.So what’s going on here?Yesterday, the price of bitcoin on Chinese exchanges set a new all-time high, leading market-watchers to expect an imminent similar milestone for exchanges outside the mainland.(Chinese exchanges dominate trading volume, with most of the business there being yuan-denominated.)

But as bitcoin pricing, in dollar terms, approached its peak, exchanges were recording fewer orders from traders—meaning the rally was running out of steam.“China was cooking the bitcoin soup,” said Bobby Cho, who’s on the bitcoin trading desk at Cumberland Mining, part of derivatives giant DRW.“It came out a little frothy.” Crypto traders have attributed bitcoin’s more general surge to recent devaluation of the yuan—yuan-holders, the theory goes, are turning to the cryptocurrency as a hedge and store of value.ps vita bitcoinThat idea gained credence as the yuan rallied over the past 48 hours, while bitcoin fell.bitcoin api pythonBut that yuan rally, triggered by new Chinese capital controls, is likely to be temporary.faucet bitcoin legit

“[Traders should] see this quick blip as a buying opportunity,” says Harry Yeh at hedge fund Binary Financial.“Expect further upside for bitcoin.Now is the time to buy and hold, because the one thing we are certain of is there will be more uncertainty.” Read this next: Bitcoin’s bull run faces one gigantic question mark heading into 2017You are viewing: Today's open Today's high Today's low Market Cap 24hr Vol 24hr Vol (USD) Total Supply Export 1 D 7 D 1 M 3 M 1 Y 5 Y - Share: Bitcoin market last 24 hours Compare Market Last Price Price USD 24hr Vol 24hr Vol USD Vol % BITCOIN Bitcoin is one of the first implementations of a concept called crypto-currency, which was first described in 1998 by Wei Dai on the cypherpunks mailing list.bitcoin exchange rate euro graphBuilding upon the notion that money is any object, or any sort of record, accepted as payment for goods and services and repayment of debts in a given country or socio-economic context, Bitcoin is designed around the idea of a new form of money that uses cryptography to control its creation and transactions, rather than relying on central authorities.bitcoin charts coinbase

In 2009, the first Bitcoin specification and proof of concept was published in a cryptography mailing list by a member under the pseudonym of Satoshi Nakamoto.Towards the end of 2010 Satoshi left the project, saying he had moved on to other things.The creator of Bitcoin never revealed his identity and simply left his invention to the world.The origin and the motivation behind Bitcoin are still today a great source of mystery.Since 2010, the Bitcoin community has grown with many developers working on the project.btc bitcoin asic minerDuring June and July 2011, Bitcoin suddenly gained media attention leading to a massive buy rally.bitcoin core i3The resulting bubble slowly deflated through the latter part of 2011, and since then the value of Bitcoin has slowly climbed once again back to its 2011 heights.bitcoin demo wallet

On September 27th 2012, the Bitcoin Foundation was created in an effort to standardize, protect, and promote Bitcoin.Tweets by @bravenewcoin Algorithm Block Confirmations Block Halving Block Reward Block Time Consensus SHA-256 6 Confirmations 210,000 Blocks 12.5 600 Seconds Proof-of-Work Difficulty Cycle Pre-mine Ports Max Supply Mining Launch Date 2016 Blocks 0% 8332/8333 21,000,000 CPU-GPU-ASIC Jan 3, 2009 Email Password Remember me next time?bitcoin risikoI've lost my passwordThis post was inspired by some tweets that I saw yesterday between Ryan Selkis (Coindesk) & DoctorBitcoin:There is clearly a widely distributed misunderstanding of what a market capitalization actually is, and specifically as it refers to crypto currencies, and in particular, Bitcoin.I felt compelled to write this post as a result.

This is by no means an exhaustive analysis, but it’s a good start to help clear up some market confusion.Please recommend this post on Medium and distribute this post to financial writers/journalists covering Bitcoin to help clear up the confusion.“Market capitalization is just a fancy name for a straightforward concept: it is the market value of a company’s outstanding shares.This figure is found by taking the stock price and multiplying it by the total number of shares outstanding.” — InvestopediaNow, to be absolutely clear, this definition was meant to apply to stocks — not commodities and definitely not digital commodities.Given the comparison is a semi-reasonable proxy for Bitcoin, and it’s widely understood by the financial press, let’s work with it.All data from this post comes from Blockchain.info, unless otherwise stated.You may have already have guessed where I’m heading with this, based on the data above, but nevertheless, let’s explore:I’ve done a quick analysis, based upon my understanding of how the Bitcoin world looks.

The dates I’ve used have some historical and some personal arbitrary significance.The first 2 dates are the two prior peaks (bubbles) of Bitcoin prices that many people will remember.The next 2 dates relate to my first two Bitcoin blog posts, Finding Equilibrium & Bitcoin Rising.July 10, 2015 is approximately 1 year before the Bitcoin rewards are halved this year on July 10th, and May 29th is yesterday, but 3 weeks after my post earlier this month on Bitcoin 2016, predicting the current short squeeze which started in earnest this weekend.Based upon my analysis, the ATH price for Bitcoin is $697.19 — which most Bitcoin technical & trading analysts, like BitcoinBullBear, will tell you represents a major breakout level for Bitcoin and will likely see a lot of resistance.This is because it IS an ATH for Bitcoin, not a technical level.The technical levels essentially confirm what I’m saying — even though the technical analysis is not factoring in the points above, it’s very clear from market behavior.The purpose of this post was merely to set the record straight.

So, if you’re in the Bitcoin world, please help educate the financial community that Bitcoin’s ATH is not c. $1151, but in fact c. $700 (and this adjusts, the longer it takes to get there, given the number of new coins issued daily).The same way that the Apple share price all time high is not $800 (they did a 6–1 stock split — so it’s $133).An alternative way of looking at it, for comparison purposes, is that Bitcoin is trading at $733 right now (as opposed to $528), relative to its previously reported ATH of $1151.I would love to see some technical analysts and chartists use my methodology, above, to replot and recalculate trendlines.When I predicted that Bitcoin will end the year at $1,000+, it’s on an net market cap adjusted basis — so therefore imputed market cap will be over $15bn — which will most certainly be an ATH for Bitcoin…Edit & Authors note: I’m not saying this is a akin to a stock split.I’m inferring that when a stock split happens, the market capitalization remains the same for the company BUT the stock price is adjusted accordingly.