"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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Exponere Mendaces's picture

Initial Coin Offerings are usually crap being pushed by alt-coiners trying to turn a quick buck.

Bitcoin doesn't have to do that kind of tactic, its value proposition is its inherent fungibility and the ability to transfer value globally.

I agree that ETH is a monster of another color, and there will be tears before its done.

As far as "not anonymous", you're only partially right - there are means to achieve anonymity using other tools. But you'd know that if you weren't so breathlessly trying to take a big shit on it.

And yeah, three-letter-agencies know everything, eh? Right. That's the paranoia that they want you to believe. They're not so omnipotent as you think they are. Encryption is still a tool that means something, even if most ZH commenters don't understand it.

 

Madcow's picture

Now that its perfectly clear that the PM markets are a scam and a fraud that will never be allowed to rise, people have no choice but to pile in to all the "Crypto Currencies" 

Gov-Co may still need to pass a law forbidding Asians from thinking of Gold and Silver as "money" - but in the West, their efforts have been enourmously successfull.  People who may have bought PMs in years past have given up and are now putting money hand over fist into "Bitcoin" "Etherium" "Riddle" "Lisk" "Dash" "Litecoin" "Ether"  .... and dozens more sure to come from smart computer programmers around the world. 

So Gold now IS a barbararous relic. They'll need to pass another law forbidding Silver to be used in new industrial applications maybe - but it is clearly no longer "Money" like "Litecoin," "Etherium,"  "Maidsafe" etc etc etc. 

 

jfb's picture

The reason behind the fact that some countries (like Japan) have declared it as legal money but still lead a war on gold & cash is getting obvious to me. The people who purchase crypto currencies are mostly from the middle class, so it's a way to lead them to put their economies in something else than gold & silver. This bitcoin mania will continue until they abolish cash, probably by the end of the year, to follow the IMF recommendations.
Once cash is abolished, you can no longer use one of those bitcoin ATMs. And nothing prevent them from imposing a huge tax/levy when you want to reconvert bitcoins into fiat money. Because no merchant truly accept bitcoin as "money", they just display a fix price in fiat money and adapt it in bitcoins, bitcoins are too volatile to be the backbone. This new tax and the subsequent crash of the bitcoin price will erase all the gains made in 2017, only the people who bought bitcoins before 2017 will be left with something valuable. I will eventully sell most of my crypto by the end of the summer.

kuro_neko's picture

I live in JAPAN, let me tell you this is total hype.

BITCOIN is NOT LEGAL MONEY in JAPAN. THATS A WRONG TRANSLATION

Its accepted as a MEANS of payment which is a different thing. Its considered as an ASSET.

every Bitcoin payment is an asset purchase or asset sale, which means you would have to file BTC capital gain or losses EVERYTIME you go at the groceries !!!

Thats totally unpractical and unrealistic. So its only HYPE, and as soon as people understand the implications of using BTC, nobody will bother using it, because in Japan you have many digital money solutions, you can pay with PASMO card or your mobile phone just by touching a small pod. There are all kind of point cards as well, STRIPE is also starting to expand its network here...

BITCOIN is already OBSOLETE.

The only real GOOD NEWS in Japan about Bitcoin is that the consumption tax (8%) will be removed next month. It will make life easier for Japanese exchanges (BitFlyer), and the Bitflyer price against other prices should converge, but thats already happening. By the way because the arbitrage (free money for more advanced traders) is gone, Bitcoin volumes will go down a lot from here and that should remove some support to the Bitcoin price. It might be a turning event for this market.

Exponere Mendaces's picture

I'd love to see what your plan is when all those Japanese Government Bonds (JGBs) start to roll over.

If you think Bitcoin is only being used to buy miso soup, you've got another thing coming.

But please, don't buy any, I want more for myself.

 

Exponere Mendaces's picture

Not another "they will stop it, I know so" comment.

You really think that ATMs and Exchanges are the only thing driving adoption?

You're wrong if you think so, lol.

 

kuro_neko's picture

@gunzeon

the point is Bitcoin only REAL use is to hide money to governments. the cryptographic scheme may be unbreakable TODAY, but with faster (quantum) computers, it will probably be breakable in 5-10 years only. Furthermore, computer security is NOT only about cryptography. Your Bitcoins are as secure as your private keys. If you computer or Mobile phone is hacked then your BTC are NOT safe. 

And if you read ZH, you should know by now the NSA has access to any mobile phone or computer in this world already....

Good headlines news about BTC "scaling" up, but even after the scaling, it will still take a few minutes to process one block. MOST transactions are on exchanges and not on the blockchain. If all transactions were on-chain, then it would be much slower by a factor x10 or more AFTER the upgrade.

On the other hand, you have ALREADY existing DIGITAL MONEY solutions enabling transfers in SECONDS such as WECHAT pay that is very popular in China for example; and APPLE PAY, GOOGLE PAY is coming... There will be no use for BTC as digital money. That leaves the anonymous part, but its NOT really anonymous.

in 5y or 10Y everybody will have forgotten about Bitcoin

Exponere Mendaces's picture

I'd happily take a bet that Bitcoin won't be forgotten in 5 years.

I won't even make you pay - just show up later and be humble when you lose.

Your "existing solutions" are centralized pieces of garbage. If you own gold, its even worse - you shoved money at a government treasury or through a coin dealer, and ended up witn inert lumps of matter.

Anyone bringing up the quantum computing angle as a "dealbreaker" really hasn't done their homework. Not only would your "existing solutions" be fucked, they wouldn't be able to change fast enough to prevent losses.

Bitcoin can adopt new algorithms if necessary -- but good luck getting the people behind SWIFT/ACH/IBAN/SEPA doing the same thing with any speed.

 

kuro_neko's picture

it took more than 1 year to agree on the block size. When quantum computers happen , it won't have time to react.

King of Ruperts Land's picture

That is the problem with quantum computers. They are just advancing so fast. Like flying cars and "beam me up Scotty".

Kinda like that turning lead into gold thing and prospecting on asteroids.

Exponere Mendaces's picture

You really can't discern between fantasy and reality, can you?

Because that's the only way you could say such things and think they were true.

Must be alt-coiner syndrome. Or maybe gold-bug blindness.

 

kuro_neko's picture

By the way I'm not a Bitcoin loser, I'm a winner

I cashed out more than 700,000 USD in winnings. Of course, I've been stupid, because with the current rally, i could have added one more zero, if I had the balls to stay or add longs. 

But hey, thats a lot of money for so little efforts. If everybody who is currently playing on Bitcoin made as much money, that would probably be TRILLIONS in gains. Obviously thats not gonna happen. I'm happy to cash out and leave the risk to the latest entrants.

The risk/reward buying a ultra-hot market without sound fundamentals at the top is not for me. Yep there are crypto-millionaires traders, I'm happy for them. The true winners are the scammers selling tulip-ICOs for TENS or HUNDREDS of millions and the ones who bought 1 or more years ago. Now the suckers are buying. I'm not a big winner, but I ain't a sucker. 

I prefer to buy real assets with my winnings, you know, like a big condo, a car.... things you need USD to buy with, not Bitcoins...

King of Ruperts Land's picture

How bad are the taxes on that were you live?

kuro_neko's picture

i pay my taxes like everybody, it was pretty bad. But if i earned that money as salary in a normal job, it would have been the same

So this number is a gross amount, the net -in my pocket amount - is much less, of course

Ultimately one of the greatest winner of the crypto bubble would the government, if everybody paid its taxes as they should

 

Of course, the TRUE goal of crypto is criminal, and to evade taxes. Some traders think they're smart and they can hide their gains forever. Good luck with that. More than one will be caught and end up in prison (depending on juridictions)...

I didn't need crypto to become a millionaire, i was a BANKSTER in a previous life. I'm happy to make a good trade and pay taxes, and to move on.

Exponere Mendaces's picture

Aaaaah... a banker.

And of course, your first thought of cryptocurrency is evading taxes.

Your bias is showing.

Also the pretentious "I'm slumming it with you dudes" is pretty thick. Might want to think about not coming across like a total douche. (At least for no reason, lol)

Eh, who am I kidding, you don't give a shit, you're a financial enured cog (or was).

 

spqrusa's picture

You are totally full of shit.

If you cashed out at 700K USD and could have added another zero, then you cashed out when BTC was at 240 USD which has been the LOW over the last 3 years.

Exponere Mendaces's picture

Sure, and you have a yacht and go brunching with Jeff Bezos.

If you had that much in holdings, "buying at the top" wouldn't be a concern. It would be an averaging-in move for you. But again, ZH proves over and over that most of the people banging on their keyboards here haven't traded a day in their lives.

And then you go on about buying a condo or a car - both things that Bitcoins have been used to buy.

Not too smart, are you?

 

kuro_neko's picture

I'm not saying I'm smart. If I made money, its that I bought at some price, and sold at a higher price. Thats all. If I was really smart, i would have made much more money.

I didn't buy BTC @ 1USD, and i didn't sell it @ 2900 USD either. I'm not trying to pick the exact bottom or the exact top when I trade. 

I buy when its low enough and looks oversold and I sell when its high enough and it looks overbought. I had a good run. 700,000 USD is nothing. I know many traders who made way way more than 1,000,000 USD.. But they're not those who've been buying in the last month.

Of course in oversold markets you get the biggest crashes and overbought market the biggest smashes. But given enough time, it usually mean reverts, and the more the markets are stretched, the more they reverse hard.

We're clearly in an overbought market  now. Good luck to all those who think they can outsmart others and get out in time. A few will, but not everyone.

BTW cars or condos with Bitcoins ? maybe in your banana country .... a second-hand car maybe ? I fail to understand whats so cool to make a payment with BTC instead your old USD...

The *ONLY* purpose to buy BTC, is to hope to be able to sell at a (much) higher price to a greater fool. But we all know not everyone can succeed in that goal.

 

kuro_neko's picture

most of my money was done buying ETH at 1EUR, and selling around 10 EUR...

i did some trading again but never with my full initial size and my last ETH sale was around 90 EUR. We're more than double that... so you can easily see that a buy and hold with my initial size would have added nearly one zero to my gains. So its not smart at all.

But many people have already made a LOT of money in this market. Many won much larger sums than I did. But let me tell you, its mathematically IMPOSSIBLE that EVERYBODY will win as much as I did. So take a break look at the LT chart and try to think: if i buy now after all this rally, what can i REALLY expect to make ?

Would I be happy if the price comes back to where it was 3 months before ? and how likely is that ?

Exponere Mendaces's picture

So you're a really successful ETH flipper, but you don't time the market.

Yeah, cool story, bro.

And you've "made so much" that nobody can touch your P/L.

How do you fit through normal doorways with an ego that big? Do you have a special crew come and modify them so you can pass?

 

Exponere Mendaces's picture

< Amusing trade banter snipped >

Right, you don't time the market because you don't have an edge.

But, in the same post you buy when it "looks oversold" and sell when it "looks overbought".

Which is it? You are contradicting yourself, as usual.

Bitcoins are being accepted for property and other things, not just in "banana country" - god, what a douche - but that is who I am dealing with, some smug market timer that doesn't think he's market timing.

And if you think the only purpose of Bitcoin is to "sell to a greater fool", then you've missed the entire point -- which considering your displayed intellect, is about par for how you operate.

LOL

 

kuro_neko's picture

@Exponere Mendaces

I might be a douche, but a rich one...LOL

and at least I'm not trying to troll the internet to find greater fools for my Bitcoins. 

Don't shoot the messenger. I'm trying to protect those who might be tempted to jump in and would lose their money because of their greed.

Its better to miss an opportunity, even big, than to risk losing your life savings in Bit-Tulips.

How do I know the market is overbought or oversold ? I just believe in Technical Analysis and indicators such like RSI, (there's plenty of others). I've seen thousands and thousands of charts during my career. Just browse in your favourite chart provider long term prices of some commodities , oil sugar, whatever, you see parabolic booms and the busts phase. People who bought at the top of those booms all thought they'd get richer. Bitcoin is no different.

Monthly RSI for BTC is at 88, a reading over 70-80 level is traditionally considered as overbought. I'm not making it, just buy any TA book or Google it. This is an objective statement, not a subjective one. Overbought markets or oversold markets may overshoot, but they mean-revert hard. No one knows the top, i don't pretend I do, but its no surprise that at some stage, the price will crash hard from here. The buy zone is around 1250 EUR area, around 50% less than the current price. I wouldn't touch it before. A 50% downtick would just be a technical correction in the grand scheme of things, and would not (for the moment) signal a broader trade change, only time would tell if it was the case.

King of Ruperts Land's picture

The quantum computer code cracker would be a bigger problem than just Bitcoin and is the one angle where I see possible NSA involvement in Bitcoin. NSA might have invented Bitcoin and put it out there, even bid up the price as an early warning system on advances in chypher technology.

If anyone independently invented a quantum computer to inverse hash functions, they could use it to make money mining bitcoin.

If I had such a thing I would only start it up deep deep within a mountain. Deeper than bunker busters and nukes could touch.

Exponere Mendaces's picture

Cool story, bro.

Let us know when the mushrooms wear off.

 

Suicyco's picture

Heh, had to Google "Beanie Babies". I gather that was a strictly US thing at the time. We just had a similar one with certain coffee cups.

This one's global, if it can be thought of as a bubble or a fad.

Exponere Mendaces's picture

You can "think" all you want.

Its been going on 9 years, 24/7/365 uptime - send value to anyone on the planet.

If that's a "fad", then SWIFT/ACH/IBAN is going to have some problems, lol.

Even the often-quoted "tulip mania" only lasted about 4 years -- https://static.seekingalpha.com/uploads/2014/9/2/saupload_Tulipomania.png

But like most ZH commenters, they don't use facts, just emotionally charged LIES.

 

fliebinite's picture

ZH used to brand itself as a home of traders, but no one here has a trading perspective at all.  Bunch of losers.  If you traded bitcoin the last 5 years, you made a fortune, and that can still happen.  If you traded gold, you didn't.  Gosh, so f*cking boring with the gold mongers, their man cave, their guns and their ramen noodles.... 

natronic's picture

I used to be boring the but Crypto market has proved itself and it's only going to get bigger.  Today it's $100 Billion in a few years it's $2 Trillion, I have recognized that fact and have jumped on board using Ripple XRP.

83_vf_1100_c's picture

  So your point is you do not believe in insurance? Drive carefully and you'll never have an auto wreck. Keep the matches on a high shelf and your house won't burn. Keep your credit rating in the 700+ and you'll always be able to go to the grocery store and buy food.

  By all means throw some money at BC, et al but it is prudent to buy some insurance. Some AU, AG, gunsnbullets, beansnrice, a clean water source and a realistic bugout place can save your ass if the SHTF. Preppers (mostly) are not crazy, They are just hedging against societal breakdown. I can't speak fot them but I am hoping it never happens but I am better prepped than 90% of my neighbors. I do not desire to live in a Venezuela but shit happens and the USA is not immune. We are either odd, crazy, or smart as fuck and future events will be our judge.  Take some of that generous BC money return and buy some of that SHTF insurance. No stories coming out of Venezuela about how bitcoins are keeping them fed or safe. Several mentions of gold and guns and food.

King of Ruperts Land's picture

I have done a bit of trading. Enough to know that you could have made or lost a fortune or broke even trading either thing over the last 5 years.

Gold has more liquidity and trades on a futures exchange, so probably it would have been easier to make a larger fortune trading gold, as one could trade larger positions. with greater leverage.

That said, someone could have traded modest positions in Bitcoin and also done quite well.

One could have lost money in either also.

Going long in something with no leverage and waiting for it to go up and then selling is not the only trade in town.

Know shit's picture

If you can't stand the heat stay out of of the kitchen.

If nothing else can get you in this game, use the excuse you will use it to practice when to get out of the PM market when it will start taking of.

Take care.

83_vf_1100_c's picture

  I read a blurb on a puter site that the high end AMD RX series vid cards are flying off the shelves and selling for ridiculous mark ups because... Etherium mining.

BadDog's picture

I'm waiting for the next 'bitcoin is dead' rendition on the old player piano. Gold bugs and silver bugs will be vindicated, but take your blinkers off.

Stevious's picture

Just discovered, bitcoin and ethereum mining is the real cause for global warming.