As somebody with a trading background, the market dynamics of bitcoin are a constant fascination. It is still a young currency and the market has therefore spent the last few years searching for a true value, or rather a price that reflects that value. Unlike with, say, the Euro when it was launched, it is a currency whose issuance and supply is modeled on commodities rather than conventional currencies. The limited supply and increasing difficulty of mining should, depending on adoption rates, result in a fairly predictable upward path over time. That price instability should, therefore, in theory not last too long.
That, of course has been a long way from the actuality. Initially bitcoin saw wild swings in price, rocketing from under $100 to well over $1000 in around 4 months before more than halving in two weeks. There is still uncertainty as to what caused that “bubblette” and it is likely that we will never truly know. It has always looked to me like a “Bunker Hunt” kind of move. At that level of issuance and price, and given the profits on the way up, it would have only taken a relatively small (in Wall Street or