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 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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Juliette's picture

With a micro-SD card ... that can be wrapped in tinfoil and integrated into a big plastic button or sth.


Karmageddon's picture

Ayone want to buy some freshly baked bread and a bottle of expertly aged wine? We only accept Bitcoin...

Anyone? Hello?

Fiat Burner's picture

"Digital gold"

What a fucking joke. Always changing the narrative to justify the mania. Maybe you'll be able to buy a digital house and get a digital girlfrend with your digital gold.

Gold is the black sheep of the investment community (i.e. "pet rock"), so why would they all of a sudden want to own it in "digital form"? Makes zero sense.

Not to mention bitcoin shares none of the properties of gold with the exception that it can exchanged for something else (for now).

Nature_Boy_Wooooo's picture

Unlike is not useless in the 21st century.

Fiat Burner's picture

Lmao, that computer or phone you are using right now wouldn't even exist without gold.

GodSpeed_00's picture

The amount of gold needed for those purposes is very minute. Gold does not get it's value from its uses. It gets it from it's scarcity. Long term gold will be about zero once asteroid mining kicks off.

Davidduke2000's picture

every satellite has 25KG of pure gold, I doubt they can use bitcoin, the satellite would be invisible.

GodSpeed_00's picture

If that's your best use case for gold then it does not mean much because there are substitues. I guess there's always a use in Spaceman helmets too, they'll need it when they're mining asteroids containing more gold than was ever mined in human history.

HRClinton's picture

Every satellite has 25 kg (~800 Toz) of Au?


GodSpeed_00's picture

You're right, it's better than gold. Especially in this digital age. Maybe join us in 2017.

MagicMoney's picture

Don't forget the crypto-kitty.

VWAndy's picture

 Think of it like running after the hot naked crazy girl as she jumps off the cliff.

koan's picture

Dem bitz turned into bytes...

FU in Advance's picture

"The tax authority is considering a levy on cryptocurrency trading gains."


Huh?  S Korea has not been taxing gains?  No wonder the public is going nuts.

Aireannpure's picture

Just wait for the stock market selling to get in on this...woo woo!!! The fear of losing out is growing fast.

Games Without Frontiers's picture

It’s getting a little fucking stupid, but then again so have the markets and the price of gold for the last 5 years. I honestly believe money has been pouring into crypto by people realizing fiat is failing but also realize central banksters won’t let gold and silver run until they no longer pull the strings.

DC Beastie Boy's picture

5 years? Like 10 years. Still buying at 2007/8 prices, the ultimate store of value!!

Albertarocks's picture

A lot longer than that.  Silver is trading at 1/3 of what it was priced at 37 years ago.  And that's not including debasement of the dollar.  In inflation adjusted terms silver is currenctly at 1/6th of its peak 37 years ago.  It should be trading today for at least 10 times what it peaked at back then.  Seriously, the charts for gold and silver should be exactly the same as Bitcoin's chart and for exactly the same reasons.  If the bankers hadn't been such meddlesome bastards for the past 6 decades gold and silver would be priced properly at least 10 times today's prices, and BTC wouldn't be exploding like it is.  The reason for the explosion in Bitcoin's price is precisely that... bankers.  And the price of BTC will do nothing but soar from here for as long as bankers exist.  This is exactly why they have approved a Bticoin futures market, so they can attempt to slam it back down to where they can enter the market.

Yars Revenge's picture

I wonder if Bitcoin is a creation of the NWO?

The Economist (Rothschild publication) predicted in 1985 that by 2018 the world would have a single currency.

Now enter BTC, which is heading into 2018 and exploding to new heights everyday. Is this all a coincidence?

Catalonia's picture

Most people were aware of BTC's existence for years while it hovered around 500 USD. Now all of a sudden it's worth 14.000. Did central banks go bankrupt overnight? Did inflation go up exponentially and we didn't notice?

buttmusk's picture

agree the price action in crypto was never overly irrational up until 1 year ago. now its full on tulip mania. not sure how that switch got flipped. i'm guessing people are moving into more and more speculative assets as this bull grows very long in the tooth and the asset bubble is inflated to historic proportions. its a sign we are very close to a cyclical peak

restelle's picture

Here's my intelligent, well educated summation of Shitcoin...  FUCK IT! 

Gimme Au, Ag, Pb, Cu, etc.

I know that no one gives a shit what I say, but I don't care and FUCK you.  Hahahaha!!!!

restelle's picture

Hey downvote asshole - I just gave myself an up arrow to offset your breathtaking display of mental retardation...  

zorba THE GREEK's picture

Restelle, calm down. I also gave you 2 upvotes to counter those who disagree with you. You shouldn't get upset with the Bitcoin believers. They will be punished enough for their misbeliefs. Just be happy that you understand what is real wealth and what is Ponzi wealth. I hope all of the Zero Hedge followers make a fortune in whatever they invest in, and at some point, before it is too late, convert their wealth into tangible assets. I have seen far too many hard working people chase a dream of instant wealth and wind up losing all the fruits of their labors on a penny stock or a Ponzi scheme. 

Dr. Ed's picture

Tulip mania 2.0

Non-Corporate Entity's picture

Icarus!!!! Go touch the sun you psycho bastards, and then what, the moon!? Bitcoin to $8,000,000,000...because it's an idiocracy!

Yars Revenge's picture

The RSI on BTC is reading OVER 90....

Buyer beware.

DC Beastie Boy's picture

97 to be exact. The last two times it was this high it sold off 85% and 75%.

Like I’ve been saying there’s a lot of profit from $14k to $2k

Clock Crasher's picture

Picture a small asteroid hitting a football stadium filled to the brim with popcorn kernels.  

Clock Crasher's picture

If this can be sustained through the weekend 20,000 is a slam dunk. 

That would be 1000 Silver Eagles per Bitcoin.

Do it!  BTC can be the fission explosion that ignites the fussion reaction that will deliver us from evil. 

Naaah.  Lambo me. 

zorba THE GREEK's picture

That's $20 per silver eagle. You are paying too much. I am buying non-current date eagles at $17.45 today. Silver rounds at $16.65. Shop around or come on down to Delaware for the real deals. 

Clock Crasher's picture

Now the only thing missing is Andy Hoffman exiting his entire BTC position and going 100% long Silver at the tippy top.  

Yellow_Snow's picture

Don't want to throw insult to injury 'oldbugs'. but...

Gold daily chart is F'ing sad... MACD bearish crossover, and RSI dropped below 50.

buttmusk's picture

The true value of gold will never be reflected so long as the paper markets exist. Don't buy it looking for short term capital gains

TomGregg's picture

I don't think it will hit $5000 before 2018. 

zorba THE GREEK's picture

"I don't think it will hit $5000 before 2018" No, but Bitcoin could.

Rex Andrus's picture

Care to wager, Mortimer?

directaction's picture

Quick Poll. Pick One:
<—- Buy tulips
<—- Buy Bitcoins

GodSpeed_00's picture

This is nothing Bitcoin will be $50K and then $100K. Not sure after that.

Davidduke2000's picture

ready to eat your dick if you're wrong??

GodSpeed_00's picture

I made a bet on 10K BTC back in 2014 and here we are. I already won.

css1971's picture

Rather than attempting to time a 5 microsecond peak, on a Bitcoin network that can only handle 7 transactions per second world wide, you may find it worth your while to limit the risk that you'll be caught on the downside as thousands or hundreds of thousands all simultaneously attempt to sell to The Greater Fool, and spread that risk over a greater time period through smaller intermediate sales of your holding.

My, that was a long sentence.

rsnoble's picture

Not Robert Frost yet, though.

zorba THE GREEK's picture

My wife hates periods too.