The pricing dropped suddenly on Oct 2, 2013 due to the FBI seizure of Silk Road website and confiscation of a large amount of BTC coins from the Silk Road Wallet. You can read more about this event in our previous post HERE.
On Oct 2nd, the BTC price dropped on both MT. Gox and BTC-e exchanges very rapidly from a steady state price of around $125 (BTC-e) and $140 (Mt.Gox) down to $75 and $110 respectively.
However, the remarkable story is the quick rebound to this pricing decrease by the overall Bitcoin economy. The pricing rebounded within a 4 hour window to return approx 85% of value back to the BTC price. This is a great sign for the BTC market resilience.
The Bitcoin network capacity was last noted at 1376TH/s. Remarkably the Bitcoin network continues to rocket upward and has hit a new milestone of 1494TH/s. The Bitcoin network is now 108% over the span of one week. The good news for those mining on the network, it appears the pace of growth is slowing slightly.
The Bitcoin market capitalization is now listed at $1.652B dollars. This means the Bitcoin market as a whole has increased in value by $6M in one week. This means the entire Oct 2 loss was erased in just 4 days.
What does this mean for the next few weeks and months regarding Bitcoin?
That is a great question, hold on and let's find out together.
MT GOX - PRICING CHART