Bitcoin Just Took a Major Nosedive - But Why?

Bitcoin, the world’s most popular virtual currency, dropped from a high of $265 to a low of $156 in a period of six hours Wednesday afternoon. Pretty much everyone the Daily Dot has spoken to recently involved in Bitcoin — buyers, entrepreneurs, venture capitalists and others — believed a “downward correction” was coming. It’s come.

It is tempting to look for a dramatic reason for a decline like this. It may well be simply that with a relatively small number of people trading the currency, a proportionally small number of people can trigger a big sell-off that will tank the price.

“I would guess it was just an early adopter of some sort who decided to cash out all at once for whatever reason,” Bitcoin investor Roger Ver initially told the Daily Dot. Read more...