When was the last time you saw an equity, ETF or currency drop more than 75% in one day, only to have trading halted to allow the market to “cool down” …
If I asked you that question yesterday, your answer should have been “never.”
That all changed, however, when the infamous electronic currency Bitcoin made history.
In the aftermath of the Cyprus bailout debacle, interest in this alternative currency skyrocketed, sending the price parabolic and pushing Bitcoin to an all-time high of $266 just yesterday.
However, in a surprising (or not-so-surprising, if you ask us) turn of events, gravity suddenly took hold and the currency plunged more than 60% — all the way to $105 — by the time the U.S. equities markets closed yesterday.
Today the sell-off continued, dragging Bitcoin below $65 before Mt. Gox decided to halt trading for 12 hours.
Mt. Gox said trading will resume at 10:01 pm tonight in an attempt “to allow the market to cool down following the drop in price.”
If you took our warning to heart last week that this investment was about to bubble over, we expect that you were spared from the past two days’ bloodbath.
This morning’s Bitcoin trading was supposedly halted after a series of cyber attacks, specifically distributed denial-of-service attacks (DDos), slowed down the servers at Mt. Gox.
These are the same types of cyber attacks that hacker group Anonymous regularly uses to deface government websites.
However, Mt. Gox denies that the lag in trading was a result of DDoS attacks, claiming that the soaring demand for new accounts overwhelmed their servers … causing the system to stall.
Sure sounds like “irrational exuberance” to us.
For our money (and yours), we still think tangible resources are the best place to store and grow your wealth.
For one thing, there’s only so much gold, silver and other precious metals out there — you don’t run the risk of having someone create more out of thin air.
And secondly, when’s the last time you saw gold or silver crash more than 70% in two days?
Which is why we feel the current weakness in gold will be short-lived.
In fact, our in-house resource expert claims we’re coming upon the greatest buying opportunity in gold in the last 30 years.
And he’s found a unique way to play gold … one that could hand you 4x, 10x, even 40x your money for each point gold moves.
It’s all detailed in his new investor briefing; simply click here for instant access.
In Other Market News:
Microsoft (MSFT), Hewlett-Packard (HPQ) and Intel (INTC) all saw heavy selling pressure today as tech tracking firm International Data Corp. said personal computer sales dropped 14% in the first quarter. This represents the largest drop since IDC began publishing the data in 1994.
- The main reasons behind the steep decline are the increasing popularity of tablets and the lackluster sales of Microsoft’s new Windows 8 operating system. The 14% drop represented the fourth-consecutive quarter of sales declines. Plus, it far exceeded the 7.7% predicted drop.
- Speaking of drops (but a good one!), weekly jobless claims declined more than expected to a seasonally adjusted 346,000. Economists had expected jobless claims to fall to 365,000. The four-week moving average for new claims increased slightly to 358,000; last week’s jobless claims number was revised upward by 3,000.
- Part of President Obama’s budget proposal includes $13 billion for spending on computer network security, as cyber attacks like the alleged one on Mt. Gox continue to increase. The proposal is about $1 billion more than is currently spent on cyber security.
- Pentagon spending on cyber security would jump to $4.7 billion in fiscal 2014 from $3.9 billion this fiscal year. Virginia-based Mandiant Corp. said in a report in February (which in-house Global Trading Expert Rudy Martin wrote about here) that at least 141 corporations have been hacked worldwide since 2006 and that the Chinese army is likely leading the way in these attacks.
Good Luck and Happy Investing,
Uncommon Wisdom Daily