BITCOIN CRASHES

Bitcoin prices fell from a high of $US1,240 to a low of $US870 this morning. This is according to data from Bitcoin exchange Mt. Gox.

That $US370 drop can by characterised as a 30% crash.

Earlier today, the People’s Bank of China warned that the controversial electronic currency carried risk. It also instructed financial institutions not to trade it.

“Is this a bubble in Bitcoin?” asked former Federal Reserve Chairman Alan Greenspan on Bloomberg on Wednesday. “Yeah it’s a bubble.”

“This is worse than the tulip mania,” said Nout Wellink, former president of the Dutch Central Bank. “At least then you got a tulip [at the end], now you get nothing.”

Here’s a look at the chart from Clark Moody.

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