Bitcoin Explodes Above $14,000 - Korean PM Fears "Serious Pathological Phenomena"

Tyler Durden's picture

Well that escalated quickly...

Just a few hours ago, Bitcoin surged above $13,000 and now, on notable volume, it has reached the stunning $14,000 level... up 20% today...

The real surge began at 1715ET...

For those keeping track, this is how long it has taken the cryptocurrency to cross the key psychological levels:

  • $0000 - $1000: 1789 days
  • $1000- $2000: 1271 days
  • $2000- $3000: 23 days
  • $3000- $4000: 62 days
  • $4000- $5000: 61 days
  • $5000- $6000: 8 days
  • $6000- $7000: 13 days
  • $7000- $8000: 14 days
  • $8000- $9000: 9 days
  • $9000-$10000: 2 days
  • $10000-$11000: 1 day
  • $11000-$12000: 6 days
  • $12,000-$13,000: 17 hours
  • $13,000-$14,000: 4 hours

As Bitcoin has soared, it appears traders have sold other cyrptocurrencies to chase it as Ether has dropped in sync..

One of the regions in the world with the most active Bitcoin community is South Korea where so many Koreans have embraced bitcoin that the prime minister recently warned that cryptocurrencies might corrupt the nation’s youth.

As Bloomberg reports, while neighboring Japan hosts more transactions by some measures, Korea punches far above its weight: In the 24-hour period through Wednesday evening in Seoul, about 21 percent of the world’s bitcoin trades on fee-charging venues involved the Korean won, according to Coinmarketcap.com. The country accounts for about 1.9 percent of the world economy.

As Korean policy makers grow increasingly worried that the mania has gone too far, the nation could become a focus for bitcoin traders around the world. Korea’s top financial watchdog, which briefly roiled cryptocurrency markets with its ban on initial coin offerings in September, said this week that it has “grave concerns” about overheated speculation and has formed a task force with other government bodies to increase supervision.

While it’s unclear what measures will emerge from Korea’s cryptocurrency task force, the government seems intent on acting. The tax authority is considering a levy on cryptocurrency trading gains, Yonhap News reported on Tuesday, while Prime Minister Lee Nak-yon warned last month that cryptocurrencies could become gateways to pyramid schemes and other illicit activity if left unchecked.

“If we let things continue, I feel some serious pathological phenomena could occur,” Lee said.

Bitcoin’s stateless status appeals to some Koreans who’ve grown wary of keeping their savings in a country that shares a border with Kim Jong Un’s increasingly belligerent regime in North Korea, according to Kwak Keumjoo, professor of psychology at Seoul National University.

“People want to take comfort in something outside and beyond the country,” Kwak said.

Finally, we note that growth continues as Coinbase CEO today noted they currently have 220 customer service reps and will add 400 next year:

"it's very difficult to keep up with the user influx."

As CoinTelegraph reports, since ChinaRussia, and a few others cracked down hard on Bitcoin, it has been relatively quiet on the regulations front as Bitcoin has continued to soar unbridled. However, the head scratching on how to regulate continues.

The next fear, for Former Fortress Hedge Fund Manager Michael Novogratz, is that Bitcoin’s continued rise and prominence in the mainstream media could reawaken the regulation beast.

However, Novogratz still feels that Bitcoin is difficult to regulate and it will be hard for governments to make an impact immediately. Novogratz, who has been outspoken on Bitcoin for some time now, claiming it could be a bubble, but one to profit from has his concerns now.

"I've got concerns that if price movements go higher, we're going to get more regulation," Novogratz said.

 

“But I think it's hard to shut down. ... I don't think that's a probability."

 

"One of the big risks out there right now is that prices are moving so fast that regulators are going to get nervous," he added.

 

"I could legitimately see Bitcoin go $13,000, $14,000, $20,000, $25,000 and see somebody balk."

Novogratz adds:

"We're in a speculative frenzy. Period. Stop. How long can it go? Who knows," Novogratz said. "What's interesting about this is it's global."

Another reason that Bitcoin has hit such heights must also be attributed to it finding its identity. Many were scratching their heads as to what Bitcoin is - a currency or an asset - but recent changes have set it straight.

"Bitcoin is winning out as digital gold," Novogratz explained.

 

"I don't think it's going to be a currency... Nothing that volatile is going to be a currency."

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Endgame Napoleon's picture

Really smart people are behind the crypto design. It is usually incorrect to go against that type of thing. Why would super-smart technical people be devoting all that energy to creating the blockchain if it was based on magical thinking? Why would rich people risk their security to bet on it if it was just some tulip fluke?

buttmusk's picture

are you saying rich people are never wrong?

Automatic Choke's picture

"Why would super-smart technical people be devoting all that energy to creating the blockchain if it was based on magical thinking?"

Um..... because they were out of work at the time?

83_vf_1100_c's picture

  The real world math does not correlate.  Gas is still $2.25, a gallon of milk  under $3, a loaf of good bread about $3.50 etc. You would need Zimbabwe hyperinflation to justify the bc rocketship price increase.

Crazy Or Not's picture

How much of the movement is the NiceHash hacker moving all those stolen coins into circulation?
Is fiat going to sit quietly and watch crypto start to break its hold on world economy?

Peak Finance's picture

That would cause price to DROP 

hongdo's picture

We are still a very long way from that.

Saucy-Jack's picture

It's a momentum play!

lol...

unsafe-space-time's picture

There will be no inflation because of bitcoin. That's why bankers created it. If they wanted they would freeze bitcoin it by transferring  it back and forth billions of times per second. Bitcoin will go to trillions and everything else will be worthless and you will starve. The beast has been revealed .

NemesisteM's picture

15 to 20 years of easy mined global reserves left of Silver trading at $16 per ounce vs the world's biggest bubble.  Decisions.

ZH Snob's picture

now knocking on 17K, BITCHEZ

Yars Revenge's picture

The madness continues...

silverer's picture

Without manipulation, this would have been, and should have been, physical silver and gold. No matter. They will soon follow Bitcoin anyway.

Consuelo's picture

 

 

And the shitty part about it is, that when those 'relics' are finally set loose (from the outside), life for everyday blokes like you & me is gonna git real interesting - probably not in a good way either...

DaveyJones's picture

well, we could use some interest 

 

Rhal's picture

ya I've been expecting a lethal crash for a while. In all previous economic collapses people had another currency to move into. But with so many currencies pegged to the $US it looking like a total society collapse was about to play out. But with the rise of cryptocurrency we have a choice again.

Maybe it should have been silver and gold, but this is much easier to adopt.

indygo55's picture

Yes they will. The financial awakening is upon us.

Txpl9421's picture

They are barbaric relics.

Sir Edge's picture

 

It's okay I am a financial Barbarian...   :o)

 
Edgey

HRClinton's picture

Why, yes they will. HODLers like me are enjoying  the Bitcoin ride and hedging, by converting a portion into gold bullion.

I already have more bullion from a fraction of my 2013 Bitcoin, than I would have had if I had bought gold instead of Bitcoin at the time.

I'm not  alone in that regard. This practice (of BTC+AU) will snowball and force a crisis in Supply vs Demand, and thus crack the Price in gold bullion. Sorry China, your days of a free ride with cheap gold are coming to an end.  As we say in CC land: Fork you!

Mustafa Kemal's picture

"Without manipulation, this would have been, and should have been, physical silver and gold"


silverer,  Im preparing to take some profits. I will  purchase Au at apmex with BTC and beef up my PM. Then, after this crashes and it tops again, I will do the same. For me,  its going to become an Au pump. 

maxblockm's picture

Has everyone made note of this yet?

APMEX sells for BTC now.

I wonder how long it will be until you can also buy BTC on APMEX?

Automatic Choke's picture

"I wonder how long it will be until you can also buy BTC on APMEX?"

I can't see that being important to them.    Their business is selling precious metals, collectibles, etc.  They are also very good at hedging -- the hedge their inventory, keeping their price risk neutral - so they aren't investors, just traders.    If you note, they will take money all sorts of different ways (cc, bank wire, e-check, etc), and bitcoin addition was just another.  I assume that they either sell or hedge any received bitcoin the second they get it.

 

Consuelo's picture

 

 

Well no shit Sherlockl...

Beat 'ole grandad Clif High's date by nearly 2 months - and a cool $grand on top of it...

Cast Iron Skillet's picture

I think the South Koreans are plowing all their cash into Bitcoin so that they might have something if they can manage to escape with their lives if shit goes down. Between cheeto head and little rocket man those poor bastards are in a tough situation.

Anteater's picture

1 ct flawless diamonds sewn into the hems of your clothes.

Otherwise you got dick, or more accurately, you got dicked.

And since the USA diamond market is entirely corrupted by

Them, you're double-dicked unless you exit through Canada.

hongdo's picture

Natural or synthetic diamonds?

HRClinton's picture

He said 1 ct.  When you look at IGDs, you're looking at only natural ones for the top end of the 4 C's.

quesnay's picture

But doesn't this make the LEAST sense for SKs, since if shit goes down there won't be any electricity or internet there for months?

Cast Iron Skillet's picture

it makes plenty of sense if they can get out. Or if they want ti hide funds fearing invasion and confiscation of wealth.

buzzsaw99's picture

$15K in five minutes.

quesnay's picture

Meh. I've done that many times with Forex. I've also done it in the opposite direction to ...

Leverage any 'sure thing' enough and you to can have massive excitement. It's just bitcoin is so volatile you don't even need leverage to experience it.

GodSpeed_00's picture

I think he means BTC will be $15K in five minutes. Not that he made 15K in 5 minutes. Crypto gains are more like 50K in 5 minutes. If you're on the right train with enough skin.

CanadaGoose's picture

Wow .... bitcoin is flying like one of Musk's rockets ... straight up!

Kurpak's picture

The eventual run for the exits on this is going to be EPIC

dark pools of soros's picture

Why? wasnt gold suppose to be $100k or more??

AGAU's picture

Folks are exiting the fiat ponzi, crypto market cap is a tiny tiny fraction of the abonimable debt bubble.

MagicMoney's picture

More like they want to get rich easy. 

Automatic Choke's picture

right.  this is classic "greed and fear" stuff.    right now, the greed is running very strong, but once the nose tips over and it heads for the ground like a paralyzed falcon, the fear stink will begin to overpower.  then we'll get to hear all the stories about the guy who mortgaged his house to buy at the top, the guy who invested the trust fund meant to sustain his aging mother at the top, etc etc.   reminds me of the story of the wise investors who were selling naked puts on the S&P500 in 1987....they were so smart, since there were so many free nickels to pick up on the railroad tracks, never heard the train coming.  a few cute stories of the guys who lost it all -- house, car, life savings, savings of relatives to pay his margin debt.....ugly stuff.

 

greed and fear.   enjoy the greed phase.   when it takes off exponentially, there isn't much longer to wait.

 

HRClinton's picture

No, I smell Fear -- not Greed -- coming out of SK and Japan. 

Ikiru's picture

There will be a HUGE run for the exits.  And then a HUGE run to get back in.  The momentum is just too powerful right now.  Shorting it in the futures market will be a dangerous activity.  When the correction comes, best take profits and get out in a big hurry.  

affirmed_78's picture

run to what, fiat?  why?  everyone wants more BTC, which is why every pullback gets bought hard.

Yars Revenge's picture

 

<--- Blow off top is here

<--- Onward to Mcafee $1M

Proofreder's picture

Truly terrible, bad, sux ...

and can never have that 10 seconds back either.  Damn.  Need earwash.

gunzeon's picture

Well, get used to it, the "nouveau rich" many of whom will be geeks will not have a lot of class, just a lot of moolah !

FreeShitter's picture

See you at all the Lambo dealership at 20k....