It just occurred to me that @$456, assuming miners are on average selling all their coins, the market has to absorb $1.6 million in sales just to stay at the same price. You gotta wonder how long bulls can keep that up, considering we're going to run out of room in blocks in the next couple of months at this rate.
The market can be irrational way longer than your shorts can. That on top that the market does not seem to be overheated at the moment.
Anyone here thinks there is a strong correlation between the huge increase in hash rate and the actual price of BTC?
I mean all that mining hardware has to ROI as fast as possible so that miners can see some nice profits.Look at the hash rate graph:
https://blockchain.info/charts/hash-rate Hash rate jumped from 510mil GH/s to 770mil GH/s in less than a month.
Now here comes the speculation bit and I could be well off here, but: We all know Chinese miners work close together with Chinese exchanges, maybe too close, if you get what I'm saying.Couldn't they artificially pump up the price so all that mining hardware that must have cost fortunes,
can pay for itself as soon as possible? I'm not saying demand for BTC didn't increase also, but did it almost double in 60 days like the hash rate or the price did? I find that hard to believe.I also think that doubling of the BTC price and maintaining it at that level is a trivial task for China's bitcoin industry.
Long story short, I think China is way too invested in Bitcoin and is going to try and sell it to the rest of the world, for as high as possible for as long as possible from now on.That's why shorting bitcoin right now seems like a bad idea to me.