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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overbet's picture

"People have lost their minds."

No your initial assessement was right, but you were scared by your success so you killed it in exchange for comfort. Are the reasons you first bought it still intact? 

 

Cash is the worse than silver and Id rather be long ramien noodles than buy more silver

freedogger's picture

Sounds like a Pink Floyd song.

GoinFawr's picture

Early Pink Floyd, Syd Barrett early

0valueleft's picture

This behavior has been taught over the last decade in the equities market. Greed and hubris. I went with a Kilo at 12000, maybe cash and 500 grams tonight. If it fails to break through 14300 again with the crazy asians pounding it, then it's possible the last clown may have squeezed into the tiny car for a while.

buttmusk's picture

you are thinking right. because once everyone heads for the exits at the same time no one will be able to get out. exchanges will crash. cash outs will be frozen or limited, etc.

 

anyone who doesn't sell in advance of the final peak will get destroyed

Mustafa Kemal's picture

"A hack and nothing happens to the price?"

Those hacks dont bother me a bit.

The hack says nothing about the blockchain, only acts as a reminder not to keep your stuff on the exchange. Find a hardware wallet. Talk to hedgeless, or to me

 

Juliette's picture

Why should it crash because of a hack? Should the US-Dollar crash if a bank is hacked or their safe is broken into?

maxblockm's picture

You ain't seen nothing yet.

https://medium.com/@mcasey0827/speculative-bitcoin-adoption-price-theory...

The hack is the exchange, not the currency.

It's been said over and over on these comments, don't leave your coins in the exchange.

tangent's picture

Do I dare say the S word.... SELL? If this isn't what a top looks like, I don't know what does. I'll be looking to buy back Bitcoin at sub-$7,000 levels next year. Or at Bitcoin's speed, maybe later this month.

topspinslicer's picture

They just kidnapped tmoses on the mountaintop kids in exchange for his electron wallet

thebigunit's picture

I think I'll wait for it to drop below a hundred, then I'll catch the next wave.

Linda Hand's picture

Central banksters are fearing a loss of their printing press and power

Number 9's picture

eth and ltc are fvkin dogs

btc usually raises them along ..

not this time

Mustafa Kemal's picture

"Sloshing"

Thats correct. Even though btc is rising like crazy my total portfolio value is not. They are moving into btc, and when they move out, they will move into Au and back to the other cryptos. This happens between the surges when all the primary coins are all increasing.

DC Beastie Boy's picture

Just in time for a nationwide power outage

Madison's_Ghost's picture

Its fiat money getting raptured.

Nature_Boy_Wooooo's picture

Ethereum dropped because a bunch of cyber kittens proved that big blocks are not the solution to scaling.

Quivering Lip's picture

Bitcoin could go to $100,000, but its strange that fear of a nuclear launch would drive "investors" into a cryptocurrency.

CoCosAB's picture

it's not strange... they are just dumb slaves!

Ban KKiller's picture

Wish I had me that cash everyone's throwing around. Your ounce, pieces of eight, remember? Bitcoin is a........

Sudden Debt's picture

Well, I'm selling a very few when I'm at 1000% profit. Already decided and it's going to be 2 rolls of gold ounces and that's my entry money.

The rest? Why not gamble all the way and see if this can go to 50K :)

Damn that I didn't buy a shitload more

 

e_goldstein's picture

Wait, you bought?

During the summer I was using your anti-crypto rants as buy signals.

You made me a tidy sum, so thanks for that.

Glad you changed your mind.

Fartsnifferbuffet's picture

So you take fiat money and by imaginary money makes no sense what you gonna sell imaginary money and get fiat back lol

VWAndy's picture

 The Market Ticker has a very nice piece on this thats worth the time.

maxblockm's picture

Karl understands healthcare, but not cryptocurrency. That piece is not worth the time.

CHIIEFHANGMAN's picture

I got in 6.5 years ago and sold all 1 year ago.

Nice profit, however, pass me a razor blade.

Clock Crasher's picture

No way.  I'd pass you a trophy.  If you were up 10,000% you did the right thing even in hindsight.  

Nature_Boy_Wooooo's picture

Let me guess....

You started reading the comments at Zerohedge 1 year ago.

 

freedogger's picture

Its almost impossible to time this shit. Don't sweat it, you did wicked.

css1971's picture

Dont even try. Buy low, sell high.... You have to know what low and high are... and those terms  only have meaning relative to other assets.

So. You have to track multiple asset classes over a long period. Then you sell off those that are high, and buy some of those that're low.

This all works in theory... and in practice, until the fucking central banks come in with their jack boots and just fucking stamp on everything. Then, everything is high, and only money, is low.

The Count's picture

This will wind up as tulip mania squared when the smoke clears.

Nature_Boy_Wooooo's picture

Is that really the strongest argument you can formulate against Bitcoin?

Give us Stirling Engines's picture

There's plenty of strong arguments against Bitcoin, but nobody responds to rationality so we just have to scream at each other instead.

TheEndIsNear's picture

IIRC, the price for rare tulip bulbs went up to the equivalent of USD $1,000,000 before the price fell -- rapidly.

HRClinton's picture

Do you even know EXACTLY what happened during the Tulip Mania, and why?

There is NO valid comparison. 

Clock Crasher's picture

I'm selling all my silver, all my gold, all my mining shares and also taking a cash advance against every credit card.  I'm going ALL IN as soon as funds clear.  

You guys not in bitcoin are DUMB.  OMFG.  I'm going to pay off all my debt.  I'm going to buy a brand new factory order corvette.  I'm going to buy everyone in my family homes including myself.  

Ughh.. thank goodness for bitcoin.  And to think I was going to hold onto PM in 2018.  Time to join the winning team.  Wait for me bitcoin!

Vertical of the Parabola FOR THE WINNNNNNN!!!!

SRV's picture

Mission accomplished... and Mr Global thanks you all!

Juliette's picture

Exactly the way to go now ... You can buy back those "pet rocks" after you made 100s of % of profits with BTC ... The gold price aint going anywhere, it is even down 2% in the past week or so.

 

 

Yellow_Snow's picture

" " "  C O N G R A T U L A T I O N S  * * *

       The Party is just begining  !!!

Clock Crasher's picture

750 American Silver Eagles, delivered, to the Bitcoin.  

VWAndy's picture

 That dont sound all that bad really. Not that its going to matter to crackheads.

1stepcloser's picture

But how does one sew a bitcoin into your Garments?

-Charlie Munger