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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globalintelhub's picture

good one - you read our book?

currentsea's picture

explain the underlying asset in the US dollar?  besides the lies fraud greed and manipulation of those that control it?  edit: and the threat of nuking anyone who attempts to undermine it, of course.

Mango327's picture

People give state cyber programs way too much credit... 

tmosley's picture

Oh no, won't someone please save us?

From the decreased supply making our crypto even more valuable?

tmosley's picture

It is, actually.

If you are going to use a meme, you could at least use it properly.

SILVERGEDDON's picture

No, you fucking tard - that is a couple of arrogant know it all snotty aristocrat wanna be rhetorical questions. 

NOT AN ARGUMENT.  

crazytechnician's picture

Triggered much ? No lambo's for you....

tmosley's picture

>Saying that decreased supply will cause price to rise is not an argument

This is why you need to take your ass back to kindergarten, proceed though 12th grade, preferably in a school that teaches philosophy and rhetoric.

DjangoCat's picture

The fiat/crypto interface is the place they are attacking.  Localbitcoins traders in the US are being targetted for being money changers without a license, and a license is uber difficult to get.

Tether, a far eastern blockchain company pegged their tokens to USD EUR and Yen, which gives their tokens direct tradeability on crypto exchange while acting as a proxy for fiat, has had their banks shut off the fiat tap.  Their deposits are up to USD 320,000,000, so reaonably large.

This is a major front on the battlefield.  As Goldman and friends jump on the bandwagon, they will need to knock down the wall between the worlds.

The SEC is another challenge, effectively taking Americans out of the ICO market.  Go team America.

Oracle of Kypseli's picture

The maddness of crowds at work again. Does anyone read history anymore? Go on burn yourselves with McMansions, Tulips, swamp land and digital kudos now. 

vega113's picture

No, Stuxnet wasn't destroying the computers - it hacked the software and reprogrammed it so it will control the connected hardware in a way that will damage it. I don't think there's a way for a virus to damage the CPU.

Yellow_Snow's picture

I think this is a possibility... I would agree the Achilles Heal of crypto's is the persistent hacking.  There's a war on to take your money.  A good crypto wallet is a must.  Don't leave your coinz on exchanges unless it's your only option.

explosivo's picture

You would have to delete every copy of the blockchain on earth. EXTREMELY unlikely.

VD's picture

assuming the crypto-muppets will have the opppurtunity to make the actual rotations.

tmosley's picture

Yeah, kind of like the rotation from Windows 7 to chalkboards.

>But they never crash!

ET's picture

I never get emotionally attached to a particular asset class.

I own some crypto, but I am smart about what kind of asset this is.

Golden Phoenix's picture

Are your temple veins throbbing like McCain's?

ET's picture

TRADING WITH THE ENEMY ACT OF 1917

With Trump announcing a trade war with China, guess what will happen to Bitcoin trading with China.

tmosley's picture

Trade wars aren't real wars, you mook.

Michael Musashi's picture

LOL! Ah, no. The spread is friggen huge!

Reminds me of the old scammy retail forex days in the early '00s.

No thanks, I'll wait till more competition comes and squeezes these folks.

ClassicCommodity's picture

Monero is better because it is fungible and thus a better form of money (moore's law)

VD's picture

last piece of the muppet rally, this time it's crypto-tullips. all the pieces are converging for the ultimate crash.

 

Tullipcoin up on deck, ready to go fullblown parabolic in T-minus 4, 3, 2........

FreeShitter's picture

Been hearing that since 09 dude, at least come up with something else.

VD's picture

crypto wasn't prime time back then. it's converging on the staggered out biz cycle hysteria top. perfect storm. you heard it here first.

VD's picture

thats what they been saying when it crashed to 500.... it's kinda sorta like almost too good to be true, no?

FreeShitter's picture

Its crashed so many times and just keeps going up, 21M in existance, get you some...

Raffie's picture

Just remember USD, stawks, gold, silver and so has NEVER crashed, only cryptos have done this and will be destroyed NEXT time it pulls back. I bet his life on it.

An the band played on.

FreeShitter's picture

I hope BTC crashes again, lol  

Raffie's picture

Think the web bot calling $6000-6800 area will have around a %30 pull back then loks like that last big pull back from there.

I'm in LTC which should pop over $100 range in the next couple months, then will get back to BTC since there looks like a HF in Nov and then around March 2018 BTC looks to be over $13k....

We will see.

zipit's picture

Won't happen until you capitulate and buy into it, Sir.

Clock Crasher's picture

Take no prisoners!!!

All you fiat are belong to us.

GS called it correct. Credit where credit is due.  Did'nt they call for 3,800?

Team GS and Team Bitcoin for the WIN!

Go get em!

Clock Crasher's picture

Go Bitcoin! printing 4,000 next. While your at it please drag Gold all the way to 1299. 

YES. WINNING.

Raffie's picture

After 1299 they will do the logical pull back to the 1250 range because you know, gotta keep PM price balanced. LOL

BadDog's picture

A passing fad, pay no attention.  Now where did I put that roll of aluminum foil?

Clock Crasher's picture

Bitcoin targets I see EVERYWHERE on YT.

7,000

19,000

500,000

Just gettign warmed up folks.  DO NOT be left behind.

VD's picture

step right up and git ur Tullipz! last chance. oppurtunity of lifetime!

 

 

VD's picture

that's what they called the ones not buying into the tullip mania too.

 

DEEP STATE BUSY RAMPING THIS SPACE -- WAIT TILL THEY PLUG THE PLUG -- IT WILL BE MORE EPIC THAN THE  UPCOMING "MARKET" CRASH.

tmosley's picture

>Comparing collectables to money

This is why you are stupid.

Beanie babies were much more in line with what tulip mania was. Again, if anything, crypto is more like the internet part of the internet bubble. Some coins may fail, but most will survive and the best ones will thrive and take over. ICOs are more like the .com bubble.

But I would hate for you to hurt your head by thinking too hard, so just keep stackin'!

VD's picture

and again you prove to not comprehend history: tullips at their height were far from collectibiles; they were the highest order blue chip du jour.

keep pretending....

tmosley's picture

You have no idea what you are talking about.

Which is why you are completely unable to increase your purchasing power.

VD's picture

ignorant of history and presumptious. good "job".