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Bitcoin Trades Over $1000 On BTC China Exchange And Crashes 30% ... Then Rebounds

•, Tyler Durden
 Putting to rest fears that today's Senatorial hearing on digital currencies would crater Bitcoin (if in the immediate term), moments ago the digital currency priced in USD on the Mt Gox exchange, rose to yet another unpredecented price, hitting $850 moments ago, or about 50% higher than where it was this morning.
But you ain't seen nothing yet.
Because at the same time, the Renminbi-denominated price of Bitcoin on BTC China, has the digital currency at 6780CNY. At a USDCNY exchange rate of 6.09, this means a price over $1100 per Bitcoin.
And as the two day chart shows, somehow while Bitcoin rose 50% in 2 days, it has doubled on the Chinese exchange.
Naturally, at this point we would suggest picking up the 20%+ free arb, however it is unclear how one can short the CNY priced leg of the transaction, or if for that matter, there is even an actual, liquid market in the currency.

And as if to prove BTC just head us, as the final chart shows, taken literally moments before we were going to post this article, BitCoin touched $900 on Mt Gox... and promptly tanked to just under $600, entering a bear market in the span of seconds on what appears to be about 10,000 trades.

2 Comments in Response to

Comment by Ed Price
Entered on:

This is kinda interesting. Way back, our Government over here messed with Japanese trade and honor, so the the Japs didn't have any choice but to go to war with us - Pearl Harbor.

Now the Chinese are using the Bitcoin development to push US into an economic and honor war. This should be interesting.

Comment by Ed Price
Entered on:

The Chinese were going wild for a little while there. They were dragging the price of Bitcoin all over the place.

If I only were set up with a Torchat buddy in China. I could have sent him some of my bitcoins and sold higher than anywhere else. I just gotta start finding the right people over there.

Here goes the rest of our freedoms over here. Government will have to clamp down somehow, now. This might just be the beginning of the big blowup.

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