Bitcoin was and still is an incredibly small market, even at the recent high of about $30 the entire economy had an approximate valuation of about $200 million which is tiny on a global currency scale.
The number of BTC is finite. As more people come to desire bitcoins, that means there are more dollars chasing up a relatively stable number of BTC. Assuming BTC is destined to become widely adopted on a global scale, $30 is still very cheap. There is nothing unhealthy about the present growth, it has had frequent downward corrections as the price has risen; this is indicative of healthy growth. At some point in the future the growth will likely taper off to a more "normal" rate.
Thanks for explaining, well written.
I have thought of this myself, it seems that every time the BTC-value explodes it begins to decrease slightly in value over the next hours.
It is pretty logical since if you notice the value of BTC has raised 50% the latest 24h and you already consider selling, you sell as soon as you think the raise is about the end, which could increase value further. But when everyone who is interested in selling BTC has done their business, the value goes down slightly.
I have a feeling about being totally wrong here... Please correct me or confirm I have a point.
Now that I think of it, this seems wrong... Correction please!