Bitcoin is taking it on the chin following the FBI seizure of Silk Road, a popular – and partially hidden – marketplace for drugs and other items generally outside the orbit of the law. As TechCrunch reported earlier today, about $1.2 billion in Bitcoin flowed through Silk Road, resulting in a nearly $80 million commission for the service.
Bitcoin is responding as you would expect, as a core market that accepted it has been taken down, the federal government hemming in on its slice of the web: By rapidly shedding value.
Bitcoin traded as high as $145 per coin at the end of September. Today, it’s trading around the $119 mark. RealTimeBitCoin is reporting a buy-sell spread of $118.10 to $119. This squares with another data source tracking the Mt. Gox Bitcoin-Dollar exchange rate, which places the current trading range at nearly precisely the $118 level.
Here’s a chart as compiled…
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