Bitcoin volatility after Silk Road shutdown

The markets have not been kind to Bitcoin over the past few hours. Here’s a 24 hour snapshot from the Bitcoin price tracking site Bitcoinity. What you see is a steady state of $140 per Bitcoin disrupted into a steep decline to $110, and then a ragged recovery up towards the $125 level. Your guess is good as mine what the rate will be in the next 24 hours.

Screen shot 2013-10-02 at 3.37.32 PM

Why the volatility? It turns out that a popular Bitcoin trading site, Silk Road, has been shut down by the Feds. Silk Road was known for its free and easy Bitcoin-fueled trading in drugs, and the indictment alleges that the proprietor, a certain Ross William Ulbricht, known as “Dread Pirate Roberts,” also used the site to plan a contract “hit” on someone who crossed his path.

Many, many more comments are on the Hacker News story, and an account of the Bitcoin volatility in a Reuters followup.

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