Markets reacted as expected today except for news broadcast by the CME group. As we discussed on our most recent podcast. Bitcoin market rose Monday morning in response to the opening of the legacy banking system. Somewhat surprising the rally seems to be led by buying with US dollars. Only moderate volume is reported on btcchina.com.
Gold buying in Asia seems to remain strong. The US paper gold markets took a little dip brought on by the CME group announcement of increased margin requirements on copper. This probably encouraged selling of gold to cover copper positions.
Gold buying in Asia: http://www.kitco.com/reports/kitcoNewsMarktNuggets20130506.html
CME group increasing margin requirement: http://www.kitco.com/reports/KitcoNews20130506AS_copper.html
This is an exciting episode. Current issues are discussed including Coinlab and mtgox’s likely court battle, Max Keiser’s battle with the bankers, the proliferation of alternate chains. A breakdown of China’s state television broadcast involving bitcoin is discussed. Jerry even stops buy to discuss his well-meaning adventures on the bitcointalk.org forum. The uncertainty of the current economic state of the world including central banks reaction with Quantitative easing. It’s never a dull week when considering finance and bitcoin.
On Friday China Network Television aired a 25 minute report on bitcoin in China. This report included topics such as buying, mining, trading, buying and the price. There’s a point of sale transaction and even an American who explains how it’s easier to get US dollars in his account with bitcoin then with the traditional financial system.
After this exposure there has been a spike in search volume at the popular Chinese search engine Baidu. Reaching a level of over double the previous maximum. China now is the country with the most downloads of the bitcoin client in the past week. The full effect will not be felt until Monday or Wednesday of next week as the traditional banking system is slower to react. Bitcoin is currently trading at 720 Chinese Yuan about the equivalent of US$117 at BTC China. This is compared to the price of $112 at MtGox.