Bitcoin in Numbers: China’s Woes

China’s currency devaluation two weeks ago, combined with the country’s less than expected growth rates, sent the world stock markets tumbling. Nobody survived the bloodbath with most world stock markets suffering significant corrections. The biggest Rally of 2015 has turned into the biggest reversal since Lehman.

Everything takes a dive:

Apart from volatility of course.

Other fun news not helping things in China:

That’s right. Could you imagine what Wall St would do if the US Government started arresting the heads of banks during a market correction or crash? 

The Chinese stock market is not just panicking about it’s losses but about the police arresting them without explanation. The situation is so bad that even writing about the stock market in the wrong way could get you arrested: China’s well respected Caijing Magazine has confirmed 1 of it’s reporters was arrested by police for a non-government-approved story being published.

This breaks participants confidence in the system itself. Trust in the system is a major factor in price movements. Similar to what is going on with the Bitcoin blocksize debate.

Meanwhile in Bitcoin & Digital Equities:

Bitcoin is down over 23% during the last 30 days (and most of the top 12 Digital Currencies/Equities have experienced similar losses).

The full technical analysis and deeper explanation on what’s driving the price of bitcoin is outlined exhaustively in this week’s Bitcoin Markets Report. 

The stock market reversals, the technical issues surrounding the Bitfinex trading platform and growing bitcoin block-size debate are all contributing factors.

Keep Calm and click the 5 year view:

Here is the breakdown of this chart showing % change between quarters.

Bitcoin has been relatively stable between $200-$300 for months now. With the recent events comes the return to volatility and there are many traders enjoying riding these wild swings. Retailers, long-term holders and those using bitcoin as a currency are not as comfortable in these environments however.

5 years of the S&P as a comparison:

Up over 74% – A respectable return over 5 years for sure.

What most people forget is that bitcoin is less than 6 years old and has only been publicly traded for a little over 5 years. Meaning if we click the 5 year or even 2 year view – Bitcoin still outperforms most hedge funds or assets classes. 

Have a great week, @Bravenewcoin

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Please see this week’s full Bitcoin Markets Report (PDF).

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