BitCoins Maturing Sooner Than We Thought

It’s hard to believe that only 30 days ago we were in the midst of the first major Bitcoin  bubble burst as some critics called it. The US Dollar (USD) to BitCoin (BTC) rate spiked to as high as $260 around April 9th only to plunge to just above $50 in a matter of 24 hours, erasing weeks of gains as well as months and years of confidence in the future of the digital currency. Once the media storm blew over and news of the Boston Marathon bombings rightfully took over the global news outlets, BitCoins became yesterday’s news. The currency needed this media vacation to let the market digest all the publicity it had received and for lack of better words, find itself again.

With the exception of the shut-down of the budding BitCoin trading platform BitFloor, the last 3 weeks have proven to be quite uneventful and I’m fine with that. Backing up for a minute, BitFloor was on track to be my favorite site for the sheer fun of trading BTC/USD pairs at relatively low transaction costs. Unfortunately, for reasons I am still not really certain about, their US banks cut them off and eventually led them to peacefully close down and refund existing accounts to their customers; a very nice gesture to say the least, considering how the entire network is anonymous and could have easily just walked off with everyone’s money.

BitCoin seems to show some maturing much sooner than I or many others probably anticipated simply by how it is acting right now in a period of little economic activity and with a hiatus from the limelight of CNBC and Fox News. Check out my 30 day chart below to see what I mean. Prices seem to be somewhat stabilizing in the range of $150-$90, which is not that volatile considering the previous wild swings we were becoming accustomed to prior to the great ‘burst’. The various BTC trading platforms and overall market does not look like it is losing steam nor are BTC holders losing confidence as the media hyped it would ultimately happen, once again another reason to tune them out and just watch the actual facts unfold. Enjoy the silence while it lasts.

30-day BTC vs USD pair up to 5/8/2013