"Bitcoin went down."

One efficient markets cliché is making fun of the people who hop around trying to explain and anthropomorphize whenever the stock market goes up or down. You know, Stocks Mixed On Strong But Conflicting Emotions or whatever.

Another cliché is that bitcoin is reinventing modern finance as we watch. So bitcoin prices dropped below $300 yesterday and look at this: "Bitcoin tumbles: are investor's losing faith?".

Analysts are citing a number of factors for the decline: bearish chart signals; ongoing regulatory concerns; large sell orders by some early adopters; and a shift in the supply/demand balance.

There's a sense in which you always want to be the analyst who cites "a shift in the supply/demand balance," though in a larger sense you never do. (Also never be the "bearish chart signals" guy, come on.)

"Some contend that Bitcoin's price is irrelevant and that it does not reflect the virtual currency's true value." Of course, and while the second half of that sentence is true in any financial market, the first half is weird. But that's not a surprise, right? Obviously bitcoin didn't go down yesterday "priced in bitcoin".


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