BitCoin Update: June 14, 2013 – How to tell when hype is over?

Sorry for the long break in BitCoin related posts, my other day job got in the way, hate when that happens!

Over the last few months I have been passively tracking the price of bitcoins relative to the US Dollar (since I live in the USA, makes sense) and noticed that after the huge explosion of media exposure in late May 2013 through early April 2013 leading to the record high over $240/BTC followed by a plunge (bubble burst as some of you would call it) shortly after into the $50 range; it has become relatively quiet. That’s not my intent for writing this latest post though.

I have attached a very telling 6-month chart below that illustrates how ridiculous the meteoric rise just looks in retrospect and how it is actually settling at a more reasonable exchange rate of nearly $100/BTC while I write this. Personally, I think this can settle a little bit lower into the $80 range (based on my own 60-day EMA), but I will accept $100/BTC as a reasonable rate right now given the global demand for decentralized currency is definitely there and not expected to wane in the near future.

Due to further distrust in our various governments, I was expecting huge inflow into Bitcoin after the whole PRISM scandal was dripped out, but the exact opposite happened. Turns out people freaked out that they were caught doing whatever they were doing and sold off mass quantities of bitcoin. Don’t worry, it’s already starting to recover. Check out this graphics and post from CoinDesk here.

 

Enjoy the graphic and your weekend.

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