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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tmosley's picture

Bet you wouldn't say that if it was gold doing the same.

loveyajimbo's picture

"Bet you wouldn't say that if it was gold doing the same."

Remember, pumper... silver exploded much like Bit-con... and then crashed "Bigly". When anything goes parabolic... unless something tangible, like a great new technology, drug, etc, beware.  Lemmings make for explosive rallies...

tmosley's picture

Except that unlike silver, bitcoin bounces right back.

There will be plenty more crashes, and plenty more rallies, and several years from now you will all be crying into your beer (that you had to pay for with crypto) that you didn't get in, and instead just started getting paid in it at your job after the dollar collapsed.

loveyajimbo's picture

Sure, Einstein... you have ton of historical data showing how Bitcon "bounces right back"... like 6 months?  LOL!!

I am not against cryptos... for speculation... I have made a ton on GAHC... I am against lemmings and pumpers thinking they are the font of all knowledge... so insecure that they have to rag on gold... which has been MONEY for 5000 years, while ignoring the multitude of deep risks associated with any unbacked crypto.

GodSpeed_00's picture

Actually it's the gold idiots that rag on Bitcoin holders. They've been hating and saying "fools gold" since Bitcoin was $10. mad because their worthless rock does nothing. I never had a problem with gold bugs until they started hating on Crypto.

sirsmokum's picture

So humanity has been enslaved for 5000 years you say?  I'd say its time for a change.

 

GodSpeed_00's picture

Unless you are making some cellphone or other technology then Gold is USELESS. Even in those cases only a very miniscule amount of gold is needed. Just pretty to look at. Oh yeah and Spaceman Helmets lol.  5K years and humanity is enslaved all the way, what a shitty form of money. Decentralized crypto can collapse a world order over night.

GodSpeed_00's picture

Bitcoin has crashed many times, the difference between Bitcoin and Silver is Bitcoin recovers and goes beyond previous highs. Every TIME.

RedDwarf's picture

"Welcome to the crackup boom"

We're not there yet.  If we were fiat would be a hot potatoe and the cost for EVERYTHING would be skyrocketing.

currentsea's picture

too much cash on the sidelines waiting to pick this up on the cheep.  the price is going to fall, but then its going to take off higher.  it has already DOUBLED from it's $1800 "low" reached less than ONE MONTH ago.  take a second to ponder that.  

makinbacon's picture

Ha...A group of people throw a bunch of money (demand) into its limited pot (supply) to artificially inflate it's value..

And ...sit around in their circle jerk admiring how rich they are from producing nothing that 99 % of the world won't buy or cares about.

If you want to be Zuckerberg , Bezos, or Page/Brin...you will actually have to grind out some work and get CIA backing.


Yellow_Snow's picture

Wow, BitCoin almost $3900, Goldman hit their year end target already!  I'm sure gold will catch up one of these days...

tmosley's picture

>A group of people throw a bunch of money (demand) into its limited pot (supply) to artificially inflate it's value

>artificially

I guess you COULD say that, but by the same metric, ALL markets that ever were or ever could be are "artificial".

GodSpeed_00's picture

Bitcoin is not a business idiot. It doesn't need to "produce" anything. The blockchain technology behind Bitcoin is worth Trillions in itself. That's what you idiots don't get.

loveyajimbo's picture

Nah, YOU are the imbecile... The blockchain technology behind Bitcoin?  Sorry, dullard... Blockchain IS an exciting new tech with tons of potential... but Blockchain is not Bitcoin.  Only a technology used by Bitcoin.

GodSpeed_00's picture

You think you're telling me something I don't know? lol Fucking moron. I have Bitcoin, I have Litecoin, I have NEO I have many crypto. Bitcoin is the original and no copy cat is going to replace the enormous community and investors behind it unless it offers something substantially better. There are crypto better than Bitcoin which I am invested in however Bitcoin is still the King. Just about every crypto is traded against Bitcoin not dollars. So chainging up is easy and fast, at the click of a mouse. Fuck off guy.

To Infinity And Beyond's picture

Bitcoin uses blockchain technology, IT IS NOT blockchain technology.
A million new cryptos can be made each and every day.
Why the fuck would anybody buy any one crypto for 3 or 8 or 50 thousand when they all do the same thing.
You guys can keep patting yourselves on the back until you go to cash in to find out you're the sucker, oops.

GodSpeed_00's picture

lol kiss my ass loser. I made $110K in the last two weeks from crypto. The only sucker is YOU.

lester1's picture

Governments cannot stop Bitcoin. If they try and shut it down people will just shift to Litecoins or something else. Stopping cryptocurrencies can only happen if they shut down the internet. 

 

Had the Fed just kept intetest rates at historical 4-5% people would have been happy parking their money in a CD. S

Now you can make 4-5% in a day with Bitcoin. The Fed fucked themselves.

GodSpeed_00's picture

4-5% is a joke in crypto. I've had 100% gains in a day.

FreeShitter's picture

This is true. The fed is irrelevant, and by the way stop paying taxes......let uncle scam fucking die

Anopheles's picture

When I hear people saying things like "making 4-5% a day" that's a sure sign of a bubble...

5% a day, without compounding, based on today's value only, would mean it would be $72k in a year.  A few percent a day compounded, the value would be millions....

Are YOU going to be BUYING Bitcoins for $70k? Or a million? If you're not buying then WHO will be buying? A Bitcoin is only worth what someone else will PAY for it.

 

GodSpeed_00's picture

Pretty sure he meant 5% a day by trading. bitcoin does not go up 5% a day..this is an easily verifiable fact.

Yellow_Snow's picture

Yes, totally right, this is the main reason I started investing in cryptocurrency.  People want to be rewarded for saving, if dollars were like this there would be less debt problems... Why hold something that depreciates every year?  Or have to pay the bank to keep a balance in your checking account.

GodSpeed_00's picture

that was my orginial reason for getting in as well. Plus I hate the banking system so the opportunity to be a part of something outside of it is something I couldn't wait to be a part of.

Anopheles's picture

Governments don't have to shut down Bitcoin.  All they have to do is regulate the exchanges.  They will track you and you will pay taxes on your capital gains.  Do you really think any government is going to let taxes slip through their fingers? 

If financial institutions get involved, it's absolutely certain that government will be controlling crypto. 

You want to go outside the system?  You'll have to go to another country to put money into crypto, or to take money out. Good luck with that...

Exponere Mendaces's picture

Its so funny, whenever Bitcoin makes a new high, the same old retired retards come out with their canes, shaking them and yelling "tulips", "beanie babies" and "EMP".

These stupid old fossils just can't stand to see a new asset class be born. If they can't understand it, then it MUST be evil, right?

What the everloving fuck. Its okay grandpa, your children know about Bitcoin and they'll be using it to pay for your assisted living expenses, while the staff steal your gold rounds from your pockets.

This rally is just part of the overall adoption wave, and you will absolutely shit yourselves when the "knee" of the tech adoption curve kicks in.

But keep on telling us how Bitcoin, an asset that has endured endless attacks in its short 8 year history, is "dead" or going to just "go away".

 

What a bunch of fucking clueless bluehair dumbshits.

 

VD's picture

8yrs vs 6k yrs.

 

who's the dumbshit?

 

seriously.

GodSpeed_00's picture

in 6K years gold has done fuck all to help humanity. It's only been used to enslave us and whenever the G-Men want it they come and take it.

VD's picture

a perfect cyrpto-muppet.

 

those young tulip peddlers also called everyone an old clueless fart who didn't buy into the frenzy, even though many were younger and smarter than them. it may not repeat, but it sure as fuck rhymes.

tmosley's picture

Yeah, your posts do rhyme with Krugman prognostications RE the internet.

VD's picture

krugman overestimated the fax machine and metcalf lol

GodSpeed_00's picture

lol can a Tulip be used to send a Billion dollars in value anywhere in the world in minutes? Can a tulip run a service like AirBNB without human intervention? Can you register a birth on a tulip? Is a tulip a decentrlized, verifiable ledger? lol you idiots are hilarious!

VD's picture

people still plant tulips. they're pretty. some nice ones at certain b&b's sprouting up soon. but a crypto "currency" this volatile and this ripe for deep state meddling with these parabolic moves is screaming DANGER. if you can't appreciate that, then you deserve what's a'comin'.

 

plenty of excuses were made in tulip mania too. well reasononed ones. i predict this ends in disaster. esp for those buying at 500 and above. time will tell.

 

i'm ultimately agnostic.

U4 eee aaa's picture

Did you use this same argument for computers, the net and smart phones too?

VD's picture

i used similar argument when the tech bubble was being blown, during that internet boom; you know, the one with all them computers (smart phones weren't prime time just yet). remember that? i was actually quite prescient too, esp when all those AOL "investors" were screaming at me how i was just a stupid kid, bc "everybody needs to get online, even you!" poor schlubs got hosed. same as it ever was....

 

history rhyming all the time.

GodSpeed_00's picture

Sure and if you were buying Google, Apple, Amazon etc then you'd be looking pretty goood today wouldn't you? Do your research and look for winners.

VD's picture

who says i wasn't? but you see, they were producing something and/or offering services.... let's see how it ends for btc.

GodSpeed_00's picture

Of course you weren't buying because if you were you wouldn't have brought up the tech bubble like it was a bad thing. Any sensible investor walked away rich. As for Bitcoin not producing anything it doesn't need to produce anything. Does gold produce anything? Hell no.

RedDwarf's picture

"8yrs vs 6k yrs...who's the dumbshit?"

First off, not an argument.

Secondly I guess you'd be saying the same thing when the horseless carriage came out vs. the horse, or the gun vs. the sword.

VD's picture

false equivalence -- we are talking about currencies and stores of value and even reserve currencies. try again. try better.

RedDwarf's picture

No it is not false equivalence.  Blockchain is a new technology that allows verifiable transactions in a manner never before possible.  Just because you make a statement does not make it an argument.

The Divided Stoopids of DuhMerica's picture

Who's the dumbshit?...

Pretty sure that that would be YOU.

VD's picture

all predicated on your opining sphincter.

To Infinity And Beyond's picture

I love these young fucking morons that bought bitcoin and now think they have unearthed the holy grail.
They're so fucking brilliant they can hardly believe it.
What us old timers have seen, time and time again, is fucking idiots like you throw your money at every fad. Good luck squirt.

U4 eee aaa's picture

"Amazon has announced they will accept bitcoins for transactions"

Watch for that day....

Txpl9421's picture

I bought my first BTC at $86. It's worth 44 times that now.

That makes listening to the idiots talking about EMPs and Phyz a little easier.

Gods's picture

I had opened an account 4 years ago and never put any into it so pissed

U4 eee aaa's picture

Hello Fed, I'd like you to meet Mr. Swan. You can call him by his first name......Black

Yellen must be filling her pants right now. Oh wait, she already does that. She must be fillinger her pants right now

RedPilledMAGAWarrior's picture

Very tempting to take some of these tulips off the table right now as we approach $4K... however, I see the rest of August extremely bullish for all crypto... what are u guys here doing, hold 80% sell 20% of stash right now?