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Back to normal…. Sigh….

June 9, 2014

Oh foo….

The bitcoin markets are back to normal.  The whales seem to have disappearred. 

I’m hoping they may be back around the first of the month again.  I’ve noticed a lot of activity on the exchanges around the first of the month.  One thing that I’m hoping is that this has something to do with the Chinese cash crunch.  The thing about Chinese banks and financial institutions is that typically they get audited on the first of the month to check for their cash reserves.  This means that there is a mad dash to raise cash near the end of the month, and banks tend to try to call in loans.  This puts their clients in a cash crunch situation.  If the PBC is in a good mood, they will inject liquidity into the system.  If not, things go really crazy for a few days.

If anyone is using bitcoin in China for big financial transactions, this may be why the markets go crazy around the end of the month.  We’ll see about this month.  The thing about this is that it’s going to be a holiday in HK on 7/1, so hopefully the mad dash for cash will be stronger this month.

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