The GoTo Site for all things Bitcoin in Beautiful Vancouver British Columbia Canada

The Bitcoin Bubble?

The Bitcoin Bubble?

Intraday Chart of VIX since August 20

Well, if you bought it half a day ago, you were down 50% at one point. But if you bought it 10 days ago, you’ve still doubled your money. You could have even bought Arian Foster’s Fantex stock when issued and made money! Well … not really, as Fantex tabled the offering.

So if anyone asks you where the volatility has gone, now you can give an answer. Remember those pathetic broad-market ranges I discussed yesterday? Well, the realized volatility in Bitcoin is something like 500.

I did this graph on log scale because … who wouldn’t want to smooth out a 10-day chart? I added volume, hence the gigantic lines that run all the way from the bottom through the price charts.

Which brings up an obvious observation. The price-weighted volume at the peak a few hours ago was 18 times the price-weighted volume all of 10 days ago. As with every bubble known to man, the publicity and the interest spiked at exactly the worst time. A lot of somebodies got in at a terrible time and most likely a lot of them got right back out.


Questions, Comments, complaints or observations? Your input is important to us.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


This entry was posted on November 20, 2013 by .

Follow me on Twitter

Blog Stats

  • 9,874 hits

Follow me on Twitter

%d bloggers like this: