Bitcoin Spikes Over $3800 As Institutional Investor Interest Soars

Tyler Durden's picture

Bitcoin is now up over 45% since the fork on August 1st, notably spiking this week (to a record high over $3800) as US-North Korea tensions escalated and both Fidelity (retail) and Goldman (institutional) noted investor interest in cryptocurrencies is soaring.

Fidelity announced Wednesday that it started allowing clients to view bitcoin and other cryptocurrencies on its website, a rare move for an established institution.

Hadley Stern, senior vice president at Fidelity Labs, said "the big story is you can transfer value through software and software alone. This is a huge societal breakthrough."


And regardless of whether bitcoin will survive, it could be like the Napster of blockchain technology, Stern said, where it is the first of its kind but the next products, in this case Spotify and Apple Music, get better and better.


"I do think [cryptocurrencies] will make things, whether it's bitcoin or something else, faster and cheaper and create new products and services that we can't even imagine," Stern said.


While some critics are skeptical of how bitcoin is used, Stern said that banning the cryptocurrency would be like banning the web or open internet protocols.


"Whether governments like it or not, it's here to stay," he said.

And as we noted earlier in the week, Goldman Sachs wrote in a note that it is becoming more difficult for institutional investors to ignore Bitcoin and the cryptocurrency market.

The debate has shifted from the legitimacy of the ‘fiat of the internet’ to how fast new entrants are raising funds.


The hype cycle is in full effect with Bitcoin, the first, largest and most widely recognized cryptocurrency up almost 200% YTD (v 11% for the S&P 500) and a host of other emerging ‘altcoins’ growing in scope and presence (witness the growth of Ethereum).


Whether or not you believe in the merit of investing in cryptocurrencies (you know who you are) real dollars are at work here and warrant watching especially in light of the growing world of initial coin offerings (ICOs) and fundraising that now exceeds Internet Angel and Seed investing.


And with the fork out of the way, it seems that demand is having an impact...

Aditionally, as CoinTelegraph reports, Bitcoin could pass $100,000 by February 2021; a Harvard academic has said announcing Bitcoin is the first digital currency to follow Moore’s Law. In emailed comments, investor Dennis Porto said that after analyzing Bitcoin’s performance, it was the “first” currency to follow the digital technology rule.

“Moore's law specifically applied to the number of transistors on a circuit but can be applied to any digital technology," Porto wrote. "Any technology that is growing exponentially (i.e., 'following Moore's law') has a doubling time."


Porto makes the assertion that Bitcoin price has de facto doubled every eight months since its inception.


“This poses a unique opportunity for investors,” he added, something which was well-received in social media circles.


While multiple well-known commentators have contributed their opinions on how much one Bitcoin will cost in the next five or 10 years, $100,000 by 2021 is at the bolder end of the spectrum.


This week, Max Keiser repeated his faith in Bitcoin reaching $5,000 in the coming months.

While Bitcoin is surging, Bitcoin Cash is sliding, falling to 4th largest virtual currency by market cap...


But Ethereum - which we noted previously appeared to be acting like a World War III indicator - continues to surge well above $300...



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ET's picture

Litecoin is the next one to go on full afterburners.

The rotation from cryptocurrencies to physical gold and silver will be PHENOMENAL.

Looney's picture


I don’t wanna pop anybody’s crypto-bubble, but this could be a legitimate concern.

Stuxnet was designed to seek and attack very specific hardware and software used in Nuclear Plants.

Is it possible that a similar virus could seek and destroy the hardware and software used for mining crypto-currencies?

Delivering a self-propagating “Crypto-Stuxnet” would be much easier than the original Stuxnet – Nuclear Plants are air-gapped, but all crypto-mining devices are PERMANENTLY connected to the Internet.

What could trigger such an attack? How about a raging financial crisis and a few Central Banks and Governments obsessed with killing the Cryptos?


ET's picture

Cryptocurrencies are a type of pyramid scheme because there is no underlying asset for our purchase.

We hope that there are ten greater fools in the future for every buyer today.

Ride the bubble while it lasts and then get physical assets with the trade.

38BWD22's picture



I stated a week or two ago that I would likely buy some gold for BTC once the price got to over $3700.  I thought it would take weeks (it was about $3100 then).  Price spiked too fast.  I'm not even back yet but may order anyway.

It does feel toppy here...  Still, I will not sell all of my BTC.  If I order like I did before., my hodl-ings will be ALL GRAVY.



EDIT: Yes, ET, I also think that the precious metals will get a boost once BTC has one of its crashes again.


Manthong's picture


The cool thing about crypto is that it is on the same network that the government, the banks and their coders use.

BaBaBouy's picture

I think I got it...
Bitcoinz trades 24/7/365. No other tangible does this.

Imagine GOLD/SILVER trading Freely all weekend...
Investors want action at ALL HOURS of the day/night...
They are F'ing the exchanges...

Manthong's picture



I might suggest that trading bits and bytes....

.. is not like holding assets,,,

...kind of like COMEX is not real  .....................................


BaBaBouy's picture

Im more convinced that the Beauty is in the 24/7 Activity, liquidity, with no Robot manip to fuck the prices for the Banks...

Imagine if you had to buy your groceries from 9:30 to 4:00, with no weekends...?
Total Bullshit... thats how the investing sheeple have been conditioned...

Manthong's picture


I might also suggest that.......

The future is not worth anything until delivery happens


BaBaBouy's picture

Hehehehe, ask Comex to deliver...
Ask Germany why they don't have the other half of their purported GOLD...
We all know the Game...

BaBaBouy's picture


Bitcoinz is now worth 3ozs GOLD Per !

Thats 63,000,000 ozs GOLD !

Thats 1,959.52 Metric tonnes !

Thats almost 1/4 of (alleged) US GOLD reserves !

Manthong's picture


bring it...

it will not be long until my one BitCoin will buy the entire gold reserves of the FRB.

tmosley's picture

I've got bad news for you...

tmosley's picture

For once you are right, sort of. It was a joke rather than an argument.

But I'm sure that flew over your head too.

bonin006's picture

Would that be the reported reserves or the actual physical reserves?

83_vf_1100_c's picture

The mind wobbles. Kelley Bundy quote if you missed that show. People's greed and stupidity nkow no bounds. I am once again fighting with my crappy Hughesnet satellite internet and wifi printer. Technology is great when it works and makes me want to eat a .45acp when it don't. Bitcoiners had better keep a pistol handy. This does not end well for non club members.

TahoeBilly2012's picture

Told y'all wave 3 bitcoin. Metals next!

Manthong's picture


I do not think anybody understands how many new infrastructure bridges I can build with my little 250A stick welder and 8000 tons of yellow colored tungsten.

DjangoCat's picture

Certainly a good point.  9-5 and no movement on weekends is so passe.

Yukon Cornholius's picture

The Clif High project sees BTC hitting $6888 in a couple of months, a 30-40% decline, then a moonshot to $10k+ by Feb. 

Forecasting is a fool's game, but the webbots have been pretty accurate when it comes to the cryptos.

Raffie's picture

would like to see his webbot app on a D Wave computer an compare results.

Raffie's picture

buy silver not gold....

waiting on ltc to go into tripple digits, might be in the next couple months. can't wait

The Cooler King's picture

"waiting on ltc to go into tripple digits, might be in the next couple months. can't wait"


So then, WHAT?


You can:


- Sell it at a profit

- NOT pay tax on your capital gain

- then ~ post another comment on Zero Hedge about what IDIOTS everyone else is?


EDIT: ^^^JUNK^^^ by Raffie... Quel Surprise...


Raffie, you will be on here later to show us your capital gains tax payments, correct? &BTW ~ for 'folks' like you 'TRIPLE" is spelled with 3 p's, not 2... You wouldn't want people to think you were borderline illiterate would you? That would be embarrassing.


For GOD's sake lad, whenever I read your comments, the last time I remember ever seeing so many misspelled words was when I watched a re-run of the movie 'IDIOCRACY'

Sh3epdog's picture

I've commented in the past that selling a btc for below 3.5k is a ripoff, 10-20k is a reasonable possibility in the next year or so with possible higher valuations longer term. It's generally a good rule never to sell all of one's holdings of a cryptocurrency, as cryptocurrencies can drop or increase so drastically that - that last 10% of one's holdings of a currency can, and often will come to be worth more than the 90% sold off if one holds that 10% into the mid to longer term. 

Gold, silver and land are all pretty ok stores of value to take cryptocurrency profits into (although land is perhaps a bit bubblish in most places right now imo)

Oswald did it's picture

You could say the same thing about the U.S dollar and most of the stock and derivatives markets

ET's picture

The US dollar is actually backed in part by gold certificates held by the Federal Reserve with the gold bullion in the custody of the US Treasury, by US real estate and publicly traded stocks, and by the willingness of the Saudi kingdom to accept only the dollar for their oil.

Foreign acceptance of the dollar also is a form of insurance from US military action.

GodSpeed_00's picture

"The US dollar is actually backed in part by gold certificates held by the Federal Reserve with the gold bullion in the custody of the US Treasury"



BaBaBouy's picture

When will they be selling Backstage Passes to the Ft. Knox GOLD Vaults???

The Cooler King's picture

The DEFINITIVE BITCOIN THREAD (tree) starts HERE... & it's, hopefully, ongoing (Thanks to BL).


The rest is just monkeys throwing shit around, which sometimes is fun, but gets boring after awhile.

The Cooler King's picture

Here is the general thread


@Raffie & mosley


You know? therre is REALLY a chance for BOTH OF YOU to immerse your intellects into a VALID bitcoin discussion... The invitation is out there... It was presented within the thread tree which I've linked within these comments...


It's not really important (TO ME), whether either or BOTH of you continue to represent yourselves as 'CLOWNS' on the subject of bitcoin.


- BadLibertarian has represented himself in an exceptional way

- mosley, thus far, seems to come & go with the same capriciousness of a coked up DAYTRADER

- Raffie ~ you need to up ytour game because you're just a clown thus far (with ZERO relevant inputs to your credit thus far)

Manthong's picture



FRB continually reports ….way down deep in the paperwork….

…that is has 8,000 tons Au in reserve,,,,,,,,,,,



Do some research… Jonathan Swift is a good place to start…….

“As when a conjurer takes a lease
From Satan for a term of years,
The tenant's in a dismal case,
Whene'er the bloody bond appears.

A baited banker thus desponds,
From his own hand foresees his fall,
They have his soul, who have his bonds;
'Tis like the writing on the wall.[4]”


A. Boaty's picture

Please tell us how we can redeem our FRNs for gold certificates, and then how to redeem the certificates for gold. (crickets)

DjangoCat's picture

Nice to meet you ET.  Have you read the book "Confessions of an Economic Hitman"?  He was directly involved in setting up the Saudi oil for USD for TBills trade.

As far as insurance against aggression goes, that would explain the demise of Saddam Hussein and Muamar Ghaddafi.  It would go a long way to understanding the current Russia Russia Russia mania, as well as the hate on for North Korea, Syria and Iran.  If you won't take my dollars, I will kill you and reduce your country to rubble.

That about sums up the strength of the USD.

Yellow_Snow's picture

If someone was to break in to Ft. Knox, all you would need to carry it out is your Granny's coin purse... You could buy a soda with you heist afterwards...

PumpherDumper's picture

Looney,  pyramid schemes pay out dividends or commissions to entice more people to join. Bitcoin is an investment and does not pay out dividends. Returns are from capital gains.

Pyramid schemes have no real business value. You can buy goods and service with bitcoins.

Pyramid schemes are centralized systems. A con artist pulls the strings, collecting payments and paying out dividends. He can collapse the scheme anytime by running away with the money.

Bitcoin is a decentralized system. The innovators (the early adopters are yet to happen) of bitcoin are unable to collapse the system even if they wished to.

You are obviously just butthurt because you think you missed the boat.  But the truth is, you can still get in now and make out like a bandit, or you can hold and start planning your retirement.

ET's picture

Bitcoin is decentralized?

Where do you think most of the miners are?

tmosley's picture

You think that gives them power over us?

Golden Phoenix's picture



The Cooler King's picture



"You think that gives them power over us?"


Whom do refer to in this instance as 'THEM' (I'm presuming Chinese mining farms, but correct me if I'm inaccurate).


PS ~ My next question, after this, is going to have something to do with the 15.8 million wallets that you acknowledged yesterday were in existence (whether owned 'anonymous' or by way of 'pseudonym')

tmosley's picture

Chinese miners.

Suggest you sign up for gab. Then you can make a thread that is easier to follow. I'm @tmosley there. Just tag me and I'll get back with you, or post a link in one of these threads.

The Cooler King's picture

"I'll get back with you, or post a link in one of these threads."


No, what YOU need to do is to go back to the previous tree and prove yourself to be an expert following the line of questioning.


If, you are SO CORRECT, it would take 10 seconds of your time to follow that line of reasoning and offer answers that people around here could understand.


BadLibertarian has done EXACTLY that thus far... (& whereby BL is NOT a clown)...


In this moment, you & Raffie are still in the CLOWN pool.


We left that thread tree with you 'acknowledging' that there are 15.8 million bitcoin wallets at the present moment... Within the next 6 questions I have OVER THERE, I was interested in getting your opinion as to the identities, "pseudonym or not" of those wallet holders...


If this simple task is beyond you & your exquisite bitcoin knowledge, I'll understand.


PS ~ It's not going to help ANYONE (especially yourself), if all u ever do is to jump on new BITCOIN threads and shill your daytrading endeavors.


EVERYONE will take you more seriously if you make an honest effort to bring some clarity into the matter. If it's IMPOSSIBLE to bring some clarity into the matter, then I guess we'll all know what to do.



tmosley's picture

>No, what YOU need to do is to go back to the previous tree and prove yourself to be an expert following the line of questioning.

No thanks. It's a mess. Get your shit together.

I don't really give a fuck if you think I am an "expert" or not. You ask me questions and I will answer them to the best of my ability. Talking shit is not conducive to that ends, so cut it out if you want to get serious.

I don't care either way, as I am making a ton of money.

The Cooler King's picture

"Pyramid schemes have no real business value. You can buy goods and service with bitcoins."


Indulge us with a "vendor" LIST if you please


Note: I know that you speak the truth, but I'm just trying to HELP YOU, HELP US, by quantifying  & publishing a list of all the GOODS & SERVICES we can procure, using bitcoin, that will help the lives of the greater majority of us on an everyday basis.


While you're at it, please supply a list of all the major 'GOODS & SERVICES' vendors who have NOT re-tooled their business models to accept BITCOIN (which IS NOT LEGAL TENDER), and do your best to explain "WHY?"

DjangoCat's picture

And just what is the underlying asset backing up the USD?  Oh yeah, that would be guns and bombs.

ET's picture

The staying power of a fiat currency is dependent on the sovereign's chances of surviving war.

Gold and silver do not have this problem.

Cryptocurrencies have the problem of being traced and banned. Why do you think there is such an interest in blockchains and a cashless society? It is because digital transactions can be monitored closely.