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Currencies BitCoin Bitcoin Auction Results and Black Friday Stats Pose Questions

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Bitcoin is continuing the downward movement. After opening at $358.93, BTC/USD fell over $20 dollars to hit a daily low of $337.94. But bitcoin didn’t stay low for long and prices soon bounced off the $339 mark. We are currently quoted at $346.11 on BTC-E.

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Since we didn’t even get an hourly close below the figure, the brief dip below $339 doesn’t mean that the level is broken. If prices can convincingly break $339 per coin, BTC may fall toward the $319 swing low. Below here, we find potential support at the $300 round figure, followed by the October 5th swing low at $285.

The Bitcoin Black Friday stats were finally announced (kinda) today. According to bitcoin payment processor BitPay, this year’s event saw an 82% increase in the number of merchants who completed transactions. Gift card retailer Gyft had their best day of bitcoin sales with 62% more transactions compared to Bitcoin Black Friday last year. The value of purchases increased by 139%. NewEgg and Amagi Metals set personal records for total dollar value of purchases.

BitPay’s blog post ends with : ”With traditional Black Friday sales down 11% from last year, it’s it’s important to recognize that bitcoin is being used for a variety of traditional products and services now.” This, coupled with the fact that no stats were provided for the total volume of bitcoin transactions, likely means that this year’s event was a disappointment. We speculated that this was the case back on November 29th, as the daily bitcoin transactions volume showed no noticeable bump on Black Friday.

The Bitcoin auction results are also in but similarly to the Black Friday stats, they pose more questions then answers. The syndicate formed by Barry Silbert’s Bitcoin Investment Trust won 48,000 BTC. Tim Draper, the winner of the first BTC auction , only got 2,000 coins this time around. The price of the winning bids was not disclosed but the speculation is that the price was lower compared to the market price. The BIT formed syndicate allowed smaller players to bid on  the auction. If these players wanted to acquire smaller chucks of bitcoins at the current price, they could’ve done it themselves on the open market without affecting the price too much. The theory goes that if they participated in the syndicate, they did so with a goal to get bitcoins at a discount.

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