Bitcoin’s Berserker Run Resumes After Exchange Breaks; Novogratz Says “Not Close To The End"

Tyler Durden's picture

Bitcoin is extending its gains after the 25-minute shutdown on GDAX...

*  *  *

Mike Novogratz - self-described as the "Forrest Gump of Bitcoin" - is on the wires calling Bitcoin a "cultural revolution."

"The world is in blockchain speculative phase... not close to the end of the speculative phase"

 

Novo added that Bitcoin futures will give rise to ETFs and even broader adoption and a "sell-off after the speculative phase is complete."

 

"Cryptokitties will be a fad"

 

"It's hard to mitigate volatility risk in Bitcoin"

 

Novogratz says "banks will be slow to move into the industry and doesn't see quick adoption of Bitcoin as a currency"

 

For now he has 25% of his net worth invested in Bitcoin/Blockchain and warns investors to "be careful" in non-Bitcoin tokens.

GDAX is back up after a 25 minute 'glitch'... and Bitcoin is rebounding

*  *  *

GDAX just broke...

Additionally, Bitfinex says it is under a significant denial of service attack.

As Bitcoin tumbled $4,500 from its highs...

 

And now the giveback...Bitcoin is down $3000 from its $19,600 highs...but is still up 30% on the day

 

Bwuahahaha... $19k...on GDAX

After tagging $19,697, Bitcoin prices tumbled to $17,900...

Prices are varying dramatically across exchanges with $2000 differences.

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
  • $12000-$13000: 17 hours
  • $13000-$14000: 4 hours
  • $14000-$15000: 10 hours
  • $15000-$16000: 5 hours
  • $16000-$17000: 2 hours
  • $17000-$18000: 10 minutes
  • $18000-$19000: 3 minutes

Coinbase is struggling to keep up...

*  *  *

 

Update: $18,000, that is all!

*  *  *

Update: WTF! $17,000...

We do note that GDAX pricing appears to be at a significant premium to several other exchanges.

*  *  *

Update: Bitcoin just surpased $16,000... speechless...

*  *  *

In the last 36 hours, Bitcoin has blasted through $12,000, $13,000, $14,000, and now $15,000 levels in an unprecedented 28% surge...

With a market cap of around $250 billion, Bitcoin is bigger than Proctor & Gamble and approaching the size of Wal-Mart as the 12 biggest 'company' in the S&P 500.

As CoinTelegraqph reports, the price is likely being driven by news of the imminent launch of Bitcoin futures trading. CBOE will be launching their futures market this coming Sunday, December 10, with CME Group following on December 18. Nasdaq plans to launch futures trading in the summer of 2018 and Japan’s Tokyo Financial Exchange is preparing to launch futures trading as well.

Bloomberg has announced that brokerage firms TD Ameritrade and Ally Invest will be offering Bitcoin futures trades to their clients. Even J.P. Morgan Chase may follow suit, despite CEO Jamie Dimon’s infamous views on the digital currency.

GDAX, Coinbase’s digital currency exchange, has been leading the rally all day. The price on GDAX is currently about $500 ahead of other Western Bitcoin exchanges. The likeliest - and most bullish - explanation is that Coinbase is the easiest way for new Bitcoin investors to get involved. Consequently, when GDAX leads the charge as it has today, it probably means new “retail” investors are fueling the rally.

Meanwhile, as CoinDesk reports, Ron Paul wants to know: would you take $10,000 in bitcoin, cash or something else?

The former U.S. Congressman from Texas is currently holding a poll on his official Twitter account that asks in which form they would take $10,000 from a "wealthy person". The catch: you can't get rid of it for 10 years.

Paul – who earlier this year called for the U.S. government to "stay out" of bitcoin – put the question to his more than 650,000 followers, asking if they would take $10,000 in the form of bitcoin, dollars, gold or 10-year U.S. Treasury Bonds. The result thus far – one hour remains in the poll at press time – indicate that of the more than 70,000 responses, 54 percent expressed support for bitcoin.

Gold took the second-highest amount with 36 percent, followed by a mere 8 percent for the 10-year bonds. Just 2 percent indicated that they would take the Federal Reserve Notes if offered.

Speaking with TheStreet in October, Paul conceded that he's no expert on cryptocurrencies (back in 2014, he argued that bitcoin wasn't "true money"). That said, he voiced his support for cryptocurrency in the most recent interview, arguing that it lends credence to the emergence of alternative currencies against the U.S. dollar.

And while Bitcoin's eye-popping price movements have some observers saying the market is in bubble territory, Naval Ravikant, the co-founder of AngelList, while he's not ruling it out entirely, holds a less alarmist view.

"Money is a bubble that never pops," he said at yesterday's Token Summit II in San Francisco.

He told attendees:

"It's a consensus hallucination."

And speaking to the newfound attention to bitcoin, Ravikant said people are interested in growing the wealth that they have. With most savings accounts returning zero these days – as central banks conduct what Ravikant called their "grand money printing experiment" – the general public is looking for alternative places to store their money and watch it grow.

Bitcoin and other protocols seem to offer that, as even the less-developed cryptocurrencies are showing substantial returns.

"I think people are looking to solve their money problems," he said.

Additionally, Coindesk notes that the former chairman of the U.S. Federal Reserve, Alan Greenspan, has joined the many financial luminaries to recently criticize bitcoin's value.

Speaking to CNBCGreenspan compared bitcoin to that of an early American form of money called "Continental currency" that came into use in 1775 and had become worthless by 1782. The paper-based legal tender was used at the time of the American Revolution and was not backed by a commodity such as gold.

Noting that bitcoin will likely suffer similar fate, Greenspan said that a "significant share" of  Continental currency was still used to create "real goods and services," even though it had no ultimate worth.

He continued:

"Bitcoin is really a fascinating example of how human beings create value, and is not always rational ... It is not a rational currency in that case."

Greenspan's comments come as the value of a bitcoin is soaring beyond most expectations, having gained thousands of dollars in value in the last two days.

And in response to that...

And finally, for those calling this a "bubble" - we would humbly suggest you ain't seen nothing yet...

 

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cherry picker's picture

A young fella I knew borrowed $30 K to get in on the .com bubble and it crashed, he lost the $30.

He had a wife and kid.  A $30 K hole in your wallet hurt then and I am sure many borrowed to get into this band wagon.

 

DC Beastie Boy's picture

In 1998 I moved to CA and a friend of a friend cashed out his $200K 401k and opened a trading account on margin. He ran it up to $1.5M and still wouldn’t cash out. He eventually got stopped out on margin and ended up with $50k, I thought he was going to kill him self. He’s still parking cars at the Toyota dealer.

Buck Rogers's picture

>>>There will only ever be 21 million btc
>>>His name was Robert Paulson

TrainReck's picture

It just goes to show how really desperate people are to grow their money. What we save outside of my wifes 403(b) every year, the fucking goverment takes half in additional taxes. Even at Married & 0, not enough Fed payroll taxes are taken out to cover the liability. So we had to cut her yearly 403 (b) contribution down 50% to have more tax taken out. Just great at 59 years old when you should be able to max out savings plans. How do you grow your savings adequately for retirement? You don't unless you bet speculatively. Either through the stock market, PM's or now Bitcoin.

I'm the last one to scoff at people in Bitcoin. I hope the smart ones short it back down to 0. Someday the Ponzi will implode. The key is having enough dry powder & essentials for when that time comes.

ToSoft4Truth's picture

I don't think the speculation is in Bitcoin.  I think the speculation is in believing the pension and social security system will be paying out. 

100 Trillion Zimbabwe Banknotes 2008 AA Series CIRCULATED are worth about $84.00 U.S. - no currency value. 

Look around at all the interbreeding in the U.S.  This place has become Zimbabwe right in front of our eyes. 

I might max out all my credit cards on Bitcoin.  If it doesn't go my way, file BK with the perfect excuse - everyone else is doing it. 

venturen's picture

ya...and ethercoin is the future....LOL

Pernicious Gold Phallusy's picture

When you're in a casino counting cards at blackjack, you're supposed to end the session and leave if you double your money. Or if you lose the fraction of your stake allocated to that session.

Nature_Boy_Wooooo's picture

That is ridiculously incorrect.

Unless you're trying to avoid exposing yourself as a card counter, you should remain at the table as long as you have an edge (which has nothing to do with how much money you have).

Any true card counter who knows what they are doing would be adjusting their bet sizes. You raise your bet size when you have a greater advantage and lower your bets when the count puts you at a disadvantage. Your bet sizes should also fluctuate with the growth of your bankroll, which means that if you have doubled your stack you should be raising your bets not leaving the table.

I'm gonna go out on a limb here and guess that you have never gambled professionally.

 

 

bankonzhongguo's picture

Can't wait for the CME futures.

They have to keep it going for that at least.

Who are they going to sell into - magical elves?

The only thing missing here is some comic book villain - Cryptpocalypse.

You heard it here first.

Even the smartest guys in the room are speechless AND don't know how any of this works in the end.

Herodotus's picture

The shylocks at CME will put the Bitcoin techies through their Cusinart processor.

JDFX's picture

Keep buying, I'm sure it's regulated , safe guarding investors.... 

2muchtax's picture

All regulated industries have been robbing us blind. no bankers ever go to jail...that is the whole reason for btc

oncemore's picture

I am looking for tulips.

Has anybody tulips to sell?

2muchtax's picture

Buy btc instead...next year you'll have all the tulips you could imagine

Kelley's picture

Nothing, nowhere climbs faster and higher. How high can The Nothing go?"

douglas's picture

I´m not sure I´d get in now, but I first stumbled on bitcoin back in 2013... In fact I was one of the few that partialy agreed with fonestar (was that his knick? ). I´ve converted profits to physical Gold & Silver and even foreign real estate so many times along the way (I now have MANY times what I had 4 years ago)...  Yet no matter what I do to keep BTC at no more than 25% of my portfolio (when I started my target was only 2%), it rises so quickly that it´s become an almost imposible task...  I´m excited, yet I´m nervous and even scared...  I´m no longer sure of what to do... What a shame this did not happen when I was 20 instead of 50...

Herodotus's picture

Sell and purchase GDX.

Garciathinksso's picture

not sure  why it's so hard to figure out, own cytpo and gold and financial assets.   fuck, why make it so hard.  You can literally buy $10 worth of bitcoin

exartizo's picture

That's a very very good question G.

It's because the mindset to buy PM's or cryptos is almost totally, but not quite completely, a direct opposite for most people.

Most investors who buy PM's share nothing in common with speculators and desperate people who buy cryptos.

There is an intersection however.

It's the realization that when cryptos eventually die, and they will, it's going to be good to hold PM's too, so you can keep your yacht you bought with BTC/ETH.

Nature_Boy_Wooooo's picture

It's a negative hedge. Bitcoin is going to suck value away from gold more and more as time goes by.

If crypto survives, which it will, gold is going to be #2 to crypto in the tech age. Gold will become so cheap that we will be using gold for wiring in computers in the future.

 

 

Two Theives and a Liar's picture

Don't agree. 

BTC and Gold share the same properties that give it value...scarcity and portability. 

Gold will NEVER be "so cheap"...because lake levels would be rising all over the world!

 

Jack Oliver's picture

BTC won’t buy you anything - you still have to find a buyer who is willing to part with their FIAT !!

Will that FIAT be worth anything when you decide to sell ??

Will BTC be blamed for the FIAT collapse ???

I always get back to the fact that China and Russia are hoarding GOLD !!

They likely can read the monetary FUTURE better than me !!

Nature_Boy_Wooooo's picture

I plan to HODL my Bitcoin until they can be used to buy everything straight up.

Lots of people like me and not many Bitcoin to go around so you better buy yours ASAP.

 

AGAU's picture

You can buy everything straight up right now by funding a crypto debit card that uses visa/mastercard terminal.

Exponere Mendaces's picture

BTC has bought people houses and cars, and other things. Overstock takes Bitcoin, Gyft allows you to pick up many retail gift cards funded by Bitcoin.

But you're still over there hyperventilating about fiat.

Yeah, you don't have a fucking clue, do you.

 

Watson's picture

1. When prices climb near-vertically the crack is nearby (in time, not price).

2.
===
[Ron Paul's USD 10,000 locked for ten years] Just 2 percent indicated that they would take the Federal Reserve Notes if offered.
===

To me, that means some time in the next ten years cash is going to be very valuable indeed.

Watson

I Write Code's picture

Classic market manipulation, I think now already greatest in history.  Somewhere(s) a guy(s) is selling a few bitcoin to himself at ever-increasing prices, and dufii around the world are jumping in after.  That doesn't mean it will fail, compared to fiat dollars why should it.  Beam me up, Scotty, I've got a bucket of Bitcoins.

Garciathinksso's picture

"tulips" is almost as stupid as, "you cant eat gold"

Herodotus's picture

Extraordinary Popular Delusions and the Madness of Crowds

Kelley's picture

Could someone please show me an actual BitCoin? 

This is roulette without a ball or a spinning table.

Nature_Boy_Wooooo's picture

That is stupid.

Educate yourself before attempting to formulate an argument.

 

Exponere Mendaces's picture

You can't see air, yet you are breathing.

I guess you aren't good at stringing concepts together. Better drink your milk and have a nap.

We've got this.

 

Two Theives and a Liar's picture

Show me your "actual bank account"...

Just becasue you might get a paper statement means NOTHING. 

Do you understand what Fractional Reserve Banking is? 

Jesus. Your so-called "money" (unless you have cash stashed at home) is in the same ether as BTC ...but without a blockchain to verify its existence! Having a hardware wallet is the same as having the mattress cash. 

See Cyprus and Greece for very recent examples of what FIAT bank runs look like. 

tunetopper's picture

nothing in the world of currencies/money happens without the knowledge and approval of the Federal Government (US Treasury), the Federal Reserve, Wall Street Banks like State Street, Mellon, Citi, JPM, Wells, BofA, PNC etc. 

Bitcoiners seem to think that they have discovered something autonomous and outside of the Governments / Banks purview/control.  You will learn a very valuable lesson in your end. 

This tool called "cryptocurrencies" is a very poor store of value, a fleeting unit of account, and a prety good medium of exchange.  The other features of actual "real" money are simply not present. 

Look up the definition of a "reserve sink"  as in China, Japan, Germany, Saudi Arabia.  Its a place where inflation is stored off-balance sheet.  Cryptocurrencies are the latest reserve sink, except instead of it being a country with non-fungible currency.  When the worlds currencies decide that bitcoin isnt fungible with their own, it will be thend of them.  That day is not far away.  Once all the illegal money transfers slow down and the DaVincis (fake or real) have traded hands- there will be a reckoning.  Better hope your not on the holding end of bitcoin with an electronic record of having abetted some anonymous shadow-figure in the chain of stolen goods.  Ask the Madoff customers/clients/victims who got out early about claw-back.... its a bitch!

 

Exponere Mendaces's picture

Translation - "I'm old and I missed out, here's why the govt will kill Bitcoin" -- oh wait, they already approved Bitcoin Futures.

Guess your little narrative fell down and had an ouchie.

Might want to reformulate your premise.

 

exartizo's picture

Interesting that Ethereum has completely missed out on the BTC run up.

Up just a few percentage points in a week while BTC is up over 60% from a week ago.

Now it's obvious that cryptos like IOTA, etc, all the mini cryptos are not in the same league as BTC. But ETH is.

You can even argue that LTC might not be in the same category as BTC.

Eventually, some Super Bright Speculator is going to think:

"What if they decide to put ETH on the CME or CBOE as a logical crypto integration process?"

Uh oh.

ETH goes from $400 to $4000 overnight?

Maybe.

Isn't speculation fun.

Nature_Boy_Wooooo's picture

Ethereum network is clogged by crypto kittens.

Not very promising news if you were in the big block boat. I think a lot of people are stepping back to reevaluate their position on Ethereum for the time being.

 

Brazen Heist's picture

BTC is fucking overloaded at the moment. Mempool has gone insane. Korea is going crazy.

It looks like East Asia is embracing crypto much more than everybody else. It's becoming a legitimate industry in Japan and South Korea. The most crypto-friendly countries at the moment.

Anopheles's picture

Asian countries go all in. 

but people forget that people in those same countries also drop things unison too.  

Automatic Choke's picture

and how many of those people have even the tiniest understanding of the math?

 

Brazen Heist's picture

While America, the Middle East and Europe eat themselves alive with monotheism, conflict, imperialism and ideology, Asia is busy getting down to business and laying down the groundwork for tomorrow's financial system.

Two Theives and a Liar's picture

Wealth is flowing east anyway...Crypto makes the transfer more efficient. 

Don't forget they are sponging up the PMs as well!

Nature_Boy_Wooooo's picture

Just wait until the results come back from common core.

I really think that making the dumbest citizens look smarter by making the smartest citizens dumber is really going to push America to the frontline of innovation and technology in the future.

 

Two Theives and a Liar's picture

Hold on...you are asking if ASIANS understand MATH?!?!?!

Ha..haha..Bwahahahahahahahahaha!!

Oh man I needed a good laugh...

Brazen Heist's picture

ETH is not in the same league as BTC.

ETH has a different purpose. I also think it has deeper problems than BTC at the moment.

exartizo's picture

You're entitled to your opinion of course,

I've read the white paper on ETH:

faster.

more versatile.

dual purpose:

currency and runs distributed apps.

from a speculative point of view, it's overdue for a large bump up.

It's market cap, though distant to BTC, is definitely in the range that would be considered a logical addition to BTC by both the CME and CBOE.

Bet on it.