"It's Pure Frenzy" - Bitcoin Extends Overnight Gains, Rises 200% Year-To-Date

Tyler Durden's picture

More Japanese exuberance overnight (as USDJPY and Nikkei stumbled hard) sent Bitcoin to fresh record highs, blowing through $2800 and nearing $2900 this morning - now up 200% year-to-date.

It seems the momentum trade has caught the eye of Mrs. Watanabe...

But as we noted overnight, it's not just Bitcoin that is soaring, Bloomberg reports that Remixpoint Co., Infoteria Corp. and Fisco Ltd., have all seen volatile swings in their share prices after announcing businesses related to digital currencies.

Remixpoint, which has more than doubled since tying up with Peach Aviation Ltd. to let customers pay for tickets with bitcoin, fell as much as 9 percent in Tokyo on Tuesday.

 

Infoteria, up more than 50 percent in the past month, is testing ways to let shareholders vote by proxy using blockchain, bitcoin’s underlying technology. 

 

Fisco, a financial information services provider, began operating a bitcoin exchange last year and is up about 25 percent since early May.

All of these gains coincide with bitcoin’s rally, with the value of the virtual currency doubling against the U.S. dollar since early May. That has made the stocks of the these small-cap companies an attractive way for speculators to invest in cryptocurrency markets without buying them directly. That’s because investors can make bets via their brokerage accounts instead of taking risks with bitcoin exchanges, according to Naoki Murakami, a well-known day trader in Japan.

“From about a month ago when all these virtual currencies started spiking like crazy, we began seeing the so-called ‘stocks of the virtual currency bubble,”’ said Murakami, a frequent speaker at investor conferences.

 

“Not everyone is sure they can trust bitcoin exchanges. And some don’t have accounts there. That’s why they’re using the stock market to speculate.”

Another reason why these stocks can become proxies for bitcoin is due to Japan’s relatively loose listing laws, some of which require no income and a market value of as little as $10 million before a company can go public. That’s made the Tokyo Stock Exchange home to hundreds of small companies.

“It’s pure frenzy,” Murakami said.

In April, Prime Minister Shinzo Abe’s government legalized digital currencies as a form of payment and placed rules around audits and security. That lent credibility to digital currencies, leading to some Japanese companies seeking partnerships with bitcoin startups.

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crazytechnician's picture

2010: Only a fucktard pays 30c for a piece of useless mathematical calculations. I'd rather put my money on real things.
2011: Only a fucktard pays 3 USD for a piece of useless mathematical calculations. I'd rather put my money on real things.
2012: Only a fucktard pays 30 USD for a piece of useless mathematical calculations. I'd rather put my money on real things.
2013: Only a fucktard pays 300 USD for a piece of useless mathematical calculations. I'd rather put my money on real things.
2017: Only a fucktard pays 3000 USD for a piece of useless mathematical calculations. I'd rather put my money on real things.
2018: Only a fucktard pays 30000 USD for a piece of useless mathematical calculations. I'd rather put my money on real things.
2019: Only a fucktard pays 300000 USD for a piece of useless mathematical calculations. I'd rather put my money on real things.

divingengineer's picture

They can ban your bitcoin, they can confiscate your gold, they can raise your taxes, they can kick in your door and throw you in a prison without trial after shooting your family because they felt "threatened", they can shoot your dog, they can freeze your bank accounts, they can confiscate your cash in a civil forfeiture, they can  do whatever they want to you and if you object nobody will give a fuck. 

Pick your best bet and go with it. Keep your head down.  Have a plan B.  Have a plan C. 

Good luck to all of you. 

 

Exponere Mendaces's picture

Oh lord another retiree.

Aren't you supposed to be on the golf course bitching about politics or something?

They can ban whatever they want, won't help - just like it didn't help with drugs, alcohol, home recording and anything else people want to do.

Everyone should have a contingency plan, and especially in that plan include a currency that isn't in the clutches of old fart Yellen and company.

Gold? LOL, don't get me started. Government captured token only allowed to be sold because people think they are "sticking it to the man" like an angsty teenager.

Hilarious.

 

divingengineer's picture

My point, young spunk, is that nothing is a sure thing. You might think that sounds like the nonsensical ramblings of an old man, but it is in fact the carefully considered warning of a Gen-Xer.

valjoux7750's picture

Uh...you don't have to buy one coin you can buy 10.00 worth if you want to. Try it you may enjoy it. I bought 145.00 worth last month, exchanged it for Xrp then DGB. My 145.00 is now worth 4500.00 how's your stack appreciating?

Exponere Mendaces's picture

LOL

The "willy" bot was thoroughly debunked as the volume of its activity was miniscule in comparison to the rest of the exchange.

But you'd know that if you had done any research. You're too busy spreading your buttcheeks to take a crap on things, apparently.

Veteran Bitcoiners know the pattern, it rallies hard (nearly exponentially) then declines just above the prior all-time highs.

Its different than metals - it actually appreciates in value over the years instead of stagnating.

 

iamrefreshed's picture

Well you should know Tom, you did it. Thanks for being the bellwether, Baaaa.

RedDwarf's picture

"just like last time there was no fundamental capital market issue which caused the spike"

The fundamental market pressure that is causing spikes is that bitcoin and related crypto currencies are at such tiny valuations compared to where they will go.  You do understand that the FX market is MASSIVE?  You do know that it dwarfs to insignificance the entire stock market by many orders of magnitude?

BitCoin to just equal the NZD needs to go to $5K or more.  To equal the GBP it needs to go to $100,000 each.  To equal USD $1.3 million each.  And that is just in M2 terms.  As more and bigger players move into this space, you will see massive spikes and also massive corrections and a given crypto even BTC might fail, but the trend is MUCH higher.

In other words, these are not massive spikes in a broader context.  They are spikes that are perfectly in line with a young and low volume market beginning to experience early growth pains.  People said the same thing when the first stock markets were opened I'm sure as well as they wondered at the massive risk and volatility of the early days.

divingengineer's picture

The USD has value based on the ability of the govt to tax, the goods and services of our economy, and not inconsequentially, the worlds most capable military.

What is bitcoin value based on? Trust? Hope? What if someone refuses to accept it? Why do so few businesses accept it? Could its value be lost overnight? Could a flaw be discovered making it insecure? Could the blockchain become corrupted or infected? Are there currently unknown risks that have not even been considered?

 

quadraspleen's picture

"Could its value be lost overnight?@

Possibly but it's becoming less likely as nation states start accepting the reality of it and accepting it (China and Japan spring to mind)

"Could a flaw be discovered making it insecure?"

Possibly, but being that the structure of the Blockchain is a tried and tested method of secure distributed ledgering (among other things) it has had most of its problems worked out. The security angle is more to do with the security of YOUR wallet. That's a whole other story

"Could the Blockchain become corrupted or infected?"

Anything is possible. The current global banking system is infected. As are the money printing machines..With greed and corruption - could it be worse?!

"Are there currently unknown risks that have not even been considered?"

Probably not any more - the worlds boffins are on to this shit big time - but it's the net..anything is possible

It's a bet..It may be a whole other thing soon; like a currency reset with gold-backed crypto, but who knows..

 

RedDwarf's picture

"The USD has value based on the ability of the govt to tax, the goods and services of our economy, and not inconsequentially, the worlds most capable military."

Yes, fiat money is backed by violence.  You are required to use it or else you go to jail or are killed.  Fiat money loses value when the state fails, or when people totally reject the currency.  What else is new?  This is why fiat always eventually fails.

"What is bitcoin value based on? Trust? Hope?"

It's value is based upon the utility it provides, it's properties, and yes even the trust and hope people have.  As a medium of exchange, it's value will of course be partly a measure of how widely accepted it is.

This is how the value of ANYTHING in a free market is decided.  Value is not an objective, external, quantifiable thing.  Its why we need free markets and price discovery.  If you and the Communists were right and value was objective, centrally planned and run economies would be efficient.

"Why do so few businesses accept it?"

Because it's new and most people still have not heard of it, fear it, or do not understand it.  It's highly unrealistic for you to expect social and infrastructure changes to happen overnight.  They take years and generations.

"Could its value be lost overnight?"

The 'value' of the blockchain technology itself no.  The utility of being able to perform verifiable transactions without 3rd party counter-risk will always be valueable to some.  BitCoin itself sure could go to zero overnight.

"Could a flaw be discovered making it insecure?"

It's unlikely but sure.  If all three layers of encryption are found to be based on faulty math then the BTC blockchain is toast.  That just means another cryptocurrency not based on bad math will take over.

"Could the blockchain become corrupted or infected?"

Infected with what?  A virus or something?  No, it's just a ledger.  Some forms of fraud will probably always happen, but it's unlikely anything on a systemic scale will happen, but sure it's possible.

"Are there currently unknown risks that have not even been considered?"

OK, that is a nonsensical statement.  By definition one cannot consider risks that one has not even imagined.

Look anything can change overnight.  We might register that there is an asertoid made of solid gold and that gold is about to become worthless.  There is no such thing as absolute security in this universe.

divingengineer's picture

Well, I'm asking because the risks with USD are fairly plain to see. In my opinion one of the things holding crypto currencies back is users that attack people who ask questions about it. You excoriate me for asking the risks instead of promoting its virtues, fine, I don't need the headaches of dealing with the shit anyway. You're rich one day, poor the next, nobody can explain why the price crashes periodically or how mt gox got raided, just buy or you're an idiot!
Where have I heard that before?

tmosley's picture

ZH should keep that stickied for the gold and silverbugs.

Lots of them seem to be missing for a long time. Too late, I guess.

Haus-Targaryen's picture

Keep a screen shot of the BTC reddit encouraging people not to kill themselves?  

Sure, why not?  Most silver and gold bugs will ride it up and ride it down too.

If you aren't taking money off the table right now, at least to cover initial investment into cryptos you're a fool.

Tell me I'm wrong and this is "a new paradigm" and if "I don't get in now I'll be priced out forever"

Reeks of 2013 early 2014 HARD.  

LawsofPhysics's picture

When governments around the world require you to pay your taxes in bitcoin, then you will know the truth...

I wonder if Mosley still has the "house full of physical silver". The cryptos have been good hedges for sure, but not without real risk...

Almost sounds like real trading...   ...almost.

"Full Faith and Credit"

tmosley's picture

Hahaha. Not much trading. Just adjusting my thesis based on the emergence of new technologies and new information. Old thesis may still come true, but probably not in a timeframe that is useful. Manufacturers simply don't need our hoards to make their production quotas. They have been able to make contracts with silver producers off-market, and are all too happy to pay those low-low prices so long as the producers are willing to accept them, and so long as energy prices remain low, I don't see that changing (and I think energy prices will FALL from here).

Trump's election is what changed my viewpoint on the political risk. I feel no need to keep my 90% silver "prepper tokens" any longer. I do still have bullion and coins, as they are easier to trade locally for a good price.

Exponere Mendaces's picture

LOL

Good 'ol curmudgeon "LawsofPhysics" doesn't understand anything about Bitcoin.

But I bet he loves Gold.

Most ZH commenters are totally into the government-captured asset that they "stack" on a shelf. Its fucking hilarious.

Please, go on, I need a good hearty laugh today....

 

tmosley's picture

If you read my comments, I am not advocating going all in at this point. I am just saying, "get some exposure, and buy big when those gaps fill". This strategy would apply well to the price action BTC has exhibited in the past, though it might not work in the future.

But yes, it is a new paradigm. About like investing in the first bank, the first stock exchange, the first farm, or the first factory. Crypto will be an ENORMOUS part of the fourth industrial revolution. The only other investment that will rival it is AI, and Alphabet is also at all time highs. Hard to tell if it is really a bubble or not, since AGI is such a big thing--bigger than the very concept of capital.

Haus-Targaryen's picture

Great anaology.

My only piece of advice: 

If you put $1k in ETH at $20, take that $1k off the table by selling 4 of the things to cover your initial investment.  Too many people are going to get absolutely pounded like a mallard duck when people start taking money off the table, ESPECIALLY with BTC and LTC. ETH is a different beast but it too has bubbled up.  

If I miss this train, that's fine. I think ETH will go back down to two digits before it sees four digits. 

My personal opinion. I'll buy then. 

CJgipper's picture

You're right, but overly aggressive in your correction predictions.

tmosley's picture

Hard to be overly aggressive given the history of crypto.

That said, more and more people getting in alongside more and more use cases means there is a floor down there somewhere. It's too far to be seen with human eyes, though.

Txpl9421's picture

Well, it really doesn't. But that does not fit into your head. So you can continue to blather, hoping it gives you a woody.

UrbanMining's picture

So what are your thoughts on namecoin and .bit instead of .com?

King of Ruperts Land's picture

And don't forget to keep a little in play for selling in the 500,000 to 1,000,000 range.

divingengineer's picture

Yes, the million dollar bitcoin wet dream! That would make every millennial an instant millionaire and they could all construct themselves a virtual reality safe space based on perfect social justice.

Sweeeeeeeeeeet!

divingengineer's picture

Just buy BTC now or you are an idiot!
Don't think, just buy!
Don't worry about how it works or why there are violent price fluctuations.
Just buy!

Raffie's picture

$3k+ today...... I might sell at 3500'ish an then wait for the pull back then BTFD

AtATrESICI's picture

i say it will dump by the weekend. what do i know.

CJgipper's picture

I hope so.  I'm sitting on a PILE of USD as I've been selling this spike.

tmosley's picture

Sounds about right. I hope so.

Might be the next weekend, though. Probably need to see it go absolutely full retard with a nice spike of, say, 50% in a day before the big crash.

WhosJohnGalt's picture

This is for all the "Tulip Mania" bubble callers.

This guy is a professional trader and migrates to where the money is (he talks a bit slow, so play it on 1.5x speed):

https://www.youtube.com/watch?v=gucldeyRYJ0

GlassHouse101's picture

Ethereum is where you want to be. BTC is going to hard fork next week, who knows what will happen to it then. BTC is also experiencing big time backlog on transactions. It's not ready for primetime like ETH is.

FreeShitter's picture

Im long on both. Going to throw in a boat load next time this corrects.

CJgipper's picture

I sold a bunch last night when it turned vertical.  Also waiting for a buy in.  We may  be waiting a while........

FreeShitter's picture

Yea, this one has some legs, Market cap over 100B now.

WhosJohnGalt's picture

Yep, I am long both as well.

However, ETH is the next-generation and objectively has far more use cases and applications than BTC.

In before all the anti-ETH BTC shills. /rolleyes

tmosley's picture

Who knows what the market will adopt? Spread your investment far and wide while still doing your research. Just like in the internet bubble, you don't want to miss the Amazon's and Google's, and you SURE don't want to get stuck with the pets.com's.

GlassHouse101's picture

Half of all cryptos use ETH blockchain, I see owning ETH as owning crytpos in general. I see BTC as myspace, ETH as Facebook (even though I hate social media)

Haus-Targaryen's picture

Agreed completely.  Not fucking getting near ETH right now. 

Look at the chart for the past 12 months. KNOW its a bubble.  Wait for your emotions to tell you "well no, its different because" 

And when you start justifying to yourself why "its different this time" and the bond market hasn't collapsed yet ... time to GTFO and take money off the table. 

Most of you crypto guys on here are going to ride it up and ride it down. 

Bill of Rights's picture

You mane like how most did with Silver...oh wait I mean Insurance...

Haus-Targaryen's picture

My weighted cost average for MY ENTIRE STACK is less than $19 as of last week.  

You can blow me. 

 

Bill of Rights's picture

Sure it is...And no thanks I don't want your boyfriend to get jealous..

TheSkipper1967's picture

I am not far off that.  My 6lb stack has a $20.25 weighted avg.

GlassHouse101's picture

It won't be a bubble until your neighbor knows what bitcoin is . . Then, I'll consider it.

The big companies, and banks are starting to get in on ETH, friend :  https://entethalliance.org/members/

Haus-Targaryen's picture

When ETH calms down and rebuilds a base I'll get into it.  Buy into it now?  Nope.  

While I am greedy, I know an emotional bubble when I see one and I won't get in on them as all the money is made by people who got in before it turned into a bubble. 

Suckers coming in for the last 25% are normally the ones who eat most of the losses. 

If you picked up ETH at $10-$15 congratulations.  Seriously.  Go to fiat and wait for it to correct and buy more. 

Or not, not my money.