Bitcoin Surge To New Record Highs Above $4800 Amid Renewed ETF Hope

Tyler Durden's picture

Bitcoin has surged to a new record high this morning over $4850 amid increased debt ceiling anxiety, continuing demand from South Korea and Japan amid the North Korea chaos, a potential short squeeze, and renewed hopes of SEC approval of a Bitcoin ETF.

The six biggest virtual currencies are all higher today...

NOTE - Litecoin and Veritaseum are among the day's best performers.

Bitcoin is now up 165% from pre-Fork-anxiety lows in late July...

 

Bloomberg's Eric Balchunas notes that Dalia Blass is set to head the SEC Division of Investment Management - which regulates, among other things ETFs. What is of note is that she is a lawyer at Ropes & Gray - the same form representing the Winklevoss twins Bitcoin ETF case. This has prompted excitement that a 'proper' (not GBTC, see below), Bitcoin ETF may be sooner than expected.

As CoinTelegraph reports, the SEC famously rejected two Bitcoin ETF proposals earlier this year, citing largely unregulated markets. They did leave themselves an out, however. The Commission indicated that in the event that a regulated futures market for Bitcoin were developed, they might reconsider. Not long ago, the Commodity Futures Trading Commission (CFTC) gave LedgerX permission to create such a futures market. The SEC agreed to hear an appeal from the Winklevoss twins earlier this year, but few watchers expected the twins to receive a different answer.

With Blass at the helm and regulated futures markets being developed, however, this could change.

Some have argued that the recent rise in the price of cryptocurrencies is driven by anxiety over the debt ceiling in the US...

And also of note, as Alistar Milne notes, there are now more open short Bitcoin positions than longs on Bitfinex, potentially causing a short squeeze...

*  *  *

Finally we note that not everyone is buying into Bitcoin...

First, GBTC (Bitcoin Investment Trust) - which we have discussed numerous times (here and here most recently) - made some headlines overnight as it topped $1000 (implying a $10,000 price for Bitcoin) and Citron's Andrew Left went on CNBC and explained why he was short...

 

The reaction this morning was an immediate dump (but buyers came right back in)...

 

Despite still trading at over 100% premium to NAV...

Aditionally, CoinTelegraph reports that David Ader, chief macro strategist at Informa Financial Intelligence, is now trying to show how Bitcoin's gains resemble that of the Nasdaq Telecommunications Index before the tech bubble burst.

An overly frothy market

Placing Bitcoin’s growth chart over that of the Nasdaq Telecommunications Index, and its subsequent rise, Adler is surmising that Bitcoin has hit the same peak and thus should be ready to plummet in a similar style.

Nasdaq reached its peak in 2000 before a monumental crash and for Adler, the similarities are there for Bitcoin’s run to this most recent all time high.

"This is the price chart for an overly frothy market, in my opinion. I just don't see anything quite as comparable to this in bubblelicious terms," said Ader, a former top-rated bond market strategist.

"I think it's going to come to a sorry ending," Ader said. "I don't know anybody who's actually used a Bitcoin for any purpose legal or otherwise. This looks like an overly frothy market and frothy markets lose their froth."

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Manipulism's picture
Declare George Soros a terrorist and seize all of his related organizations' assets under RICO and NDAA law - Sign the petition, fuckers.

https://petitions.whitehouse.gov/petition/declare-george-soros-terrorist...

Looney's picture

 ... "I think it's going to come to a sorry ending," Ader said

Crypto-Currencies are like Virtual Condoms. In the end, both will cause REAL pain.   ;-)

Looney

Yukon Cornholius's picture

Nobody has heard of or uses bitcoin...but it's in a frothy bubble.

38BWD22's picture

 

 

@ Yukon

That's not true.  I have recently run into two people on the floor where I work who are into cryptos, I did not know they were.

Also, BTC can pay for gold: jmbullion.com  <-- I have used them, good service.

The Cooler King's picture

Can somebody please LINK me to the 'BITCOINS 4 HOUSTON RELIEF' fund?

 

~~~

Sorry, but I was wondering why JJ Watt managed to accrue $13 million in donations (in 2 days)...

 

http://www.espn.com/nfl/story/_/id/20528610/jj-watt-hurricane-harvey-rel...

 

whilst the HOUSTON BITCOIN COMMUNITY messageboard doesn't even have a 'post' on their boards since May 8, 2017...

 

https://www.meetup.com/houstonbitcoin/boards/?pager.offset=0

 

I'm assuming you BITCOIN people have INTERNET... Right? 

 

'charitable donations' are, in fact a tax write-off... but I don't suppose anyone of you will be needing any of those.

FreeShitter's picture

A big ass White Boy that plays for the Houston Texans

Consuelo's picture

 

 

Well, he's a _______ football player, but sorta has the name of a ________ football player.

 

Does that answer it better...?

Yukon Cornholius's picture

My sarc tag must have fallen off my last post ;)

Everyday more and more people climb aboard the crypto-express. Haters will always be on the sideline furrowing their brows in vain atempts to understand what's happening.

38BWD22's picture

 

 

My Sarcasm and Bullshit Meter basically does not work.  Yeah, I'm one of those guys who have to pretty much have sarcasm spelled out, or I'll miss it...

batushka's picture

Which brings us to a good question:  what's the trusted way to purchase and sell? I've been reading horror stories of crypto getting stolen from exchanges from insiders who have access to the accounts.  A few days ago I decided to give crypto a try and signed up for a Kraken account to try to purchase some Monero (XMR).  While waiting through the verification process I decided to read up on how to navigate Kraken - and read about the above horror stories.

Is there any credible tutorial on how to actually trade crypto safetly?  Stocks are pretty easy to buy and sell, the platforms solid and quick.  I'd like to give crypto a try but these platforms seem weak and very questionable.

Thanks in advance!

 

 

rbianco3's picture

I've had very good luck with Coinbase the last few months, before that - there were more than a few kinks which ended up helping me in the long run- in periods of heavy selling coinbase went MIA- for hours- beautiful thing was I would have been shaken out two times- I was upset about it.

Can't remember the last time that happened - trades fast- dual authentication with Google's online number generator thing. I keep the two factor on at all times- feels safe but limited history. Amounts in lower five figures- only complaint now are no cool charts/tools like Etrade had and prices WAY higher including juice on the buys and sells. Active trading can work but plan on burning several percent round trip. If I remember it's $2.99 per $400 trade plus a twenty five or so cent haircut each way on price. Profits are so insane- not worth compaining about--- yet.

If you know someone using Coinbase- they'll win a $10 bounty for the referral. Good luck. Oh if you buy physical from JMB, (with bitcoin only) you get almost cash price- nearly instant clears- save commision on the BTC profit taking, faster than a wire transfer out. Don't expect an Etrade/or other professional brokerage tools- they barely have the account total on one screen and I chart using external software. Do at least tiny position to familiarize also- too risky to not play at all while everyone elses balance sheet is inflating like crazy. 

batushka's picture

Thanks! What chart software are you using.?

batushka's picture

Thanks! What chart software are you using.?

Raffie's picture

Litecoin was $74 yesterday and today spiked to $97.... w00t....

The Cooler King's picture

Have you donated any of it to the "LITECOIN HOUSTON RELIEF FUND"?

 

or, are you waiting for that to come online? on that thing called 'THE INTERNET'?

rbianco3's picture

Same on the second- saves you the hefty brokerage sell fees when you take profits in physical. Odd thing happened on one of the > 5k orders- Coinbase prompted me, asking if the Bitcoin was going to another brokerage... hmm dunno why- either they didn't want to lose customer or it's government tracking.

Have used same company five orders totaling five figures last two months- all but one transactions cleared near-instantaneously- one took almost the full ten minutes to clear in very heaving trading (selloff) got almost cash discount- arrived second business day after order- winner chicken dinner lots fun deliveries.

TeamDepends's picture

Ever heard of the island nation of Japan?

abyssinian's picture

Goldman Sack of scams said Bitcoin will hit a wall at $4800 and then correct to $2600... let's see if they are wrong again. 

GlassHouse101's picture

The globalist elite 'Like' this!

1000 splendid suns's picture

Clif High, jsnip4, bix weir...

Yellow_Snow's picture

Scammers, stay away from anything they are pumping...

aloha_snakbar's picture

The Birth of Bitcon

Two friends, Bob and Satosh are sitting around after an evening of consuming copious amounts of some especially wicked dank. Bob says to Satosh:

Hey Satosh... I have a genius idea

Yeah, what is it?

You know that app you coded...the one that churns out the useless SHA algorithms?

Yeah?

LOL...lets sell them as digital currencies!

Dude...you are fucking wasted, here, have another bong

No, seriously. We get that graphic artist you know create a slick image of a 'gold' coin, and then we can further confuse the rubes by telling them their 'coins' have to be "mined", as if they were real, physical metals!

Dude... you are insane! What kind of moron would buy something like that?

Bob: Oh... I dont know. Remember that now worthless token you paid stupid money for on WoW?

They sit there and stare at each other for a moment, and then both burst out into torrents of tear stained laughter

They are still laughing today.

The rest is history

Lore's picture

Exactly. This is merely a variant of the Mandrake Mechanism, a very timely fad that dovetails nicely with the almost universal western pursuit of Consequence Avoidance and Something For Nothing -- in this case, Nothing For Nothing. 

TulipCoin, anyone?

skywalker22's picture

Dude, you totally do not get it. The blockchain is a revolution that is bringing truth and honesty to all industries. Once you attached blockchain to a business process, middlemen are eliminated, costs are reduced, and potential for criminal activity is curtailed. Want to eliminate rigging of silver market, apply veritaseum to COMEX.

Yes, there are a lot of scammers right now trying to make a fast buck with useless coins. Do your homework and invest in the facebooks googles and amazons of tomorrow that this industry is birthing now. Forget tulip coin, invest in litecoin, which is setting up to be our future means of exchange after the banking system crashes.

Open your mind, or be left behind.

malek's picture

Actually you don't get it.

You're proposing a decentralized system, but at the same time claim it has all centralized benefits (rule of law, courts punishing fraudsters) but none of the centralization disadvantages (taxes, possibility of making it illegal.)

Lore's picture

I am not some sheeple who can be swayed by rhetoric and repetition.  I do my own research and make my own observations.  Take your spam and go fuck yourself.

skywalker22's picture

Dude, you totally do not get it. The blockchain is a revolution that is bringing truth and honesty to all industries. Once you attached blockchain to a business process, middlemen are eliminated, costs are reduced, and potential for criminal activity is curtailed. Want to eliminate rigging of silver market, apply veritaseum to COMEX.

Yes, there are a lot of scammers right now trying to make a fast buck with useless coins. Do your homework and invest in the facebooks googles and amazons of tomorrow that this industry is birthing now. Forget tulip coin, invest in litecoin, which is setting up to be our future means of exchange after the banking system crashes.

Open your mind, or be left behind.

Lore's picture

I am not some sheeple who can be swayed by rhetoric and repetition.  I do my own research and make my own observations.  Take your spam and go fuck yourself.

skywalker22's picture

Dude, you totally do not get it. The blockchain is a revolution that is bringing truth and honesty to all industries. Once you attached blockchain to a business process, middlemen are eliminated, costs are reduced, and potential for criminal activity is curtailed. Want to eliminate rigging of silver market, apply veritaseum to COMEX.

Yes, there are a lot of scammers right now trying to make a fast buck with useless coins. Do your homework and invest in the facebooks googles and amazons of tomorrow that this industry is birthing now. Forget tulip coin, invest in litecoin, which is setting up to be our future means of exchange after the banking system crashes.

Open your mind, or be left behind.

Lore's picture

I am not some sheeple who can be swayed by rhetoric and repetition.  I do my own research and make my own observations.  Take your spam and go fuck yourself.

rbianco3's picture

I went in like it was that game where when the music stops and you don't have a chair you lose.

Some people did great with Tulips- some not- most now are way into free tulips- it's a high risk/ high reward propo - I'd not bet the farm or the tractor- maybe a used truck.

RightEdge's picture

That's my favorite story of all time! Mainly because I've made a lot of money on those useless SHA algorithims, but also because its funny, so everyone gets to smile. (But for me, its really about the money.)

Raffie's picture

U can not reason or explain anything to trolls because it might overload their brain cell.

I sleep well with my investments. 

HRClinton's picture

I bought BTC a few years ago at $600.

I'm just sitting on it, and will continue to do so. As only one of numerous tools in my investment toolbox, its purpose is not to make a quick buck.

It's sole purpose is to remain a hidden, liquid and mobile reserve for any personal doomsday scenario - to be the "Hidden Money Of Last Resort". It is NOT intended for shady uses. It is a legitimate parachute, a liferaft. Period. 

I can access it in any domestic or overseas location - which you can't do with cash or Au.  I.e. good luck with moving tens or hundreds of thousands in cash or Au across borders. 

Sometimes, the solution to a problem is staring you in the face - if only you shift your vantage/view point. Alas too many peeps get married to their vewpoints, and refuse to grow and move on.

rbianco3's picture

That is some impressive patience.

Though now that I've funneled the original investment plus some into physical- I don't really bother watching it anymore. Has been over a week since I looked last I saw Ether was running close to $400 and have no idea where it's at today.

vega113's picture

Not exactly. Satoshi had to invent the solution for Byzantine Generals problem first. The solution allows parties to reach a consensus over unsecured network as long as most of the participants follow the predefined rules. It was a genius solution.
And, they didn't sell those coins to anyone. People who so saw the potential just invested their own time, electricity and CPU into mining bitcoin and then used these bitcoins to transact with each other.

abyssinian's picture

clowns laughed at me when I bought bitcoins at $800, clueless pretenders laughed at me when I bought more Bitcoins at $1200, Mr. wannabe know it all laughed at me when I bought more bitcoins at $2000, Jealous dbags made fun of me when I bought more Bitcoins at $3000.  Last couple weeks, most of these clowns, pretenders, wannabe know it alls, dbags were all calling me and asking how they can buy bitcoins and cryptos.  I didn't laught but showed them how to buy bitcoins and othe cryptos.  While I am reading this post and seeing there are still tons of clowns, pretenders, wannabe know it alls, dbags in this world... which means I know there are much more room to grow for bitcoins and other cryptos! Have a good weekend everyone cause I will.

 

rbianco3's picture

I chickened out on buying Bitcoin at around $100.

Anyone have a guess as to the percentage of adults having purchased crypto? My guess is less than 2 percent- like the early days when only the super geeks carried large square smart phones and it took ten years for the market to saturate. Lot's and lot's of bubble room assuming none of the risks pops them permanently. It's too large of an opportunity to not play at all- imho- unless your risk tolerance is at zero point zero. Can't win if you don't play.

RedDwarf's picture

If you want to grow your wealth, buy some crypto.  If you want to join the crowd of crypto-haters and be part of the 'cool club' do so, but in a few years time you'll be staring at that monstrous lost opportunity.  Then you'll either regret it, or turn into one of those people who is forced to go nuttier and nuttier as their cognitive dissonance grows.

SAIAN's picture

Why is crypto run like a cartel, with only a few holding the cards and Bitcoin the main if not the only gateway to get into the scheme of things?

Lore's picture

I'm in too, but let's stay clear: it's laughable to suggest that this thing is 'wealth.'  It's a game, and it only works as long as you can keep roping in more participants.  Somewhere down the line, there's going to be a stampede for the door. 

vasallo7g's picture

its a reference of value, and no its not going to fail, the fed has been trying for a while now and it has only made bitcoin stronger

yes they may succed in crashing bitcoin, but the cat is out of the bag now, cryptos are the future of money

and there is no bad news regarding cryptos no gold somewhere that can dissapear

what do you think people is going to do when they realize that dollars are not exchangeable for gold as they were told so in school, and that they have printed them without any collateral? that is going to be the real stampeade

get your bitcoins now or weep later

malek's picture

"reference"

So what are they referencing?

Lore's picture

I know, I know:  "This is the next big thing," "It's different this time," and "You've gotta be in it to win it!" 

I've Heard That Song Before - Frank Sinatra

It seems to me I've heard that song before
It's from an old familiar score
I know it well, that melody

It's funny how a theme
Recalls a favorite dream
A dream that brought you so close to me

I know each word because I've heard that song before
The lyrics said, "Forevermore"
Forevermore's a memory

Please have them play it again
And I'll remember just when
I heard that lovely song before

It's funny how a theme
Recalls a favorite dream
A dream that brought you so close to me

Please have them play it again
And I'll remember just when
I heard that lovely song before