Quote from: bitk on May 20, 2011, 11:34:36 AM

I've started thinking bitcoins have nothing to do with gold. They are more like diamonds, with people having stashes filled with them but not releasing them too quickly or the price will drop really quickly Wink

One thing is for sure, if old bitcoiners want to fix a maximum price, (eg 10 ) they can sell those at that price for quite a long time...

This is a pretty good analogy.

Except diamonds are easier to control since they were in the hands of even fewer people.

I'm beginning to think that the rally was caused by a very small number of somewhat large investors who were trying to get in. The market was able to absorb some of that through people selling, but that push has somewhat disappeared (at least for now). The selling pressure is still there, so that's making the price go down just a bit.

Since the market has so few actually for sale, it takes so little to make it move up, but once that dries up, the slide back down happens.