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Bitcoin is trading stable on Black Friday. There is no sign of large scale selling (yet). After opening at $365.58, BTC/USD fell $11 dollars to a daily low of $354 flat. But prices didn’t stay low for long and soon bitcoin staged a large $21dollar rally that topped out at $375 per coin. We are currently quoted at $369 on BTC-E.
Today is Bitcoin Black Friday. Similarly to the Black Friday event in the States, bitcoin merchants slash their prices in a bid to attract holiday shoppers. The discounts will last until Monday, with special deals to anyone paying with bitcoin. Last year the total amount of BTC sales amounted to $6 million USD. With many more merchants climbing on the bitcoin acceptance train in 2014, this year’s figure will almost certainly top that.
Because almost all merchants instantly convert all the bitcoins received as payment to cash, Black Friday may be price-negative for BTC. So far we haven’t seen any sings that point to large-scale selling. But keep in mind that Black Friday is traditionally a USA holiday and we just passed 2 PM Eastern Time, the day is still young. Another unknown factor is how bitcoin payment processor Coinbase and BitPay plan to ‘’get rid of” the bitcoins received as payment. Will they the coins on the exchanges as they come in, or spread them out over several days to limit the market impact? In addition, the selling may be partially countered by shoppers buying BTC with the intention to make use of the bitcoin specific discounts.
Last year’s event had no negative effect on BTC prices but it happened during a massive bull market for bitcoin. This time around we find ourselves in a …read more