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...

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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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SixIsNinE's picture

yep - the smart & savvy crowd with cash on the sidelines is dipping their toes in....
$2mil and their ankles are wet...

PT's picture

"It's not rational!"  The last 20 years have not been rational.  If it hasn't been a problem for the rest of the eCONomy, why would it be a problem for BitCoin?

Erek's picture

Is BitCoin really that valuable, or is the FRN asswipe that valuless?

Bastiat's picture

FRN still buys anything.

maxblockm's picture

Used to be able to buy 1 BTC for 1 FRN. Can you still buy 1 BTC for 1 FRN?

Don't say FRN "still" buys anything.

JRobby's picture

Greenspan was responsible for laying the groundwork and creating a lack of confidence in the USD and fiat in general. He was Chairman A  LONG   TIME!!

Now he claims a substitute currency, a substitute medium of exchange with apparently massive demand for it is "not rational" ?????????

Max Hunter's picture

Agreed.. Especially compared to silver and gold... could be because of manipulation but who knows.. /sarc

ilion's picture

Some FX and CFD brokers have put Bitcoin on close-only mode today due to extreme volatility. At the same time the UK FCA regulated broker Tickmill said today 

( that Bitcoin is soon becoming the most traded instrument by its global algorithmic client base. Bitcoin is gradually becoming a go-to-market for various algorithms who need volatility to make money.
brianshell's picture

Ha. He said bitcoin was a currency.

Irrational? Why is it any more crazy than federal reserve private bank notes printed out of thin air?

richdemetri's picture

Exactly. I see a lot of people here complaining about bitcoin. But what is better? Gold, which is priced on a bottomless paper comex market. The USD, which is, well you all know it. Let's face it, there is no real currency. Only stuff that goes up and down based on greed and fear. It could be river pebbles for all it matters.

divingengineer's picture

It actually looks more conservative than the graph of the federal reserve's balance sheet for the last decade. 

So I agree with you, it's less crazy than FED people doing the same thing with REAL money. 

U4 eee aaa's picture

BTC will be global. It is the backbone of the new worldwide barter network

divingengineer's picture

It was a curious thing, the exchange broke, but when I was able to get back online I found that my Limit orders had filled. So it was only the outging data that was affected. It might be a good idea to leave a stop order at night when you go to bed from now on, just in case. 

marysimmons's picture

Total crypto market cap up to $416 Bil.  $36 Bil poured into the crypto space over the last 24 hrs!  Not coming from "noobs".  Whales running up BTC so they can go short futures then dump BTC?  Alts to the moon if that happens, IMO

ShorTed's picture

Whales don't need to buy btc to trade futures as they're cash (read USD fiat) settled contracts.  Dollars to buy and dollars as proceeds

wafm's picture

right... er but that what you said when it was at 4000... 

Madison's_Ghost's picture

No.  Its central bankers buying-in with all their zero cost fiat.

sessinpo's picture


exponential: whales are offloading and noobs are buying.

mind the step


Not that many hedge funds have been in. There are still many just starting. Institutions to take over next followed by retail. Then it pops, a few years down the road.

booboo's picture

E Coin from Evil Corp, the fix is in, everyone thinks it would be really complicated and well "just not fair" but the reality is no one gives a fuck about your feelings or your 1000 dollar investment in bitcoin in 2008, you never owned anything anyways, it was a video game.

rphb's picture

good time to sell then. At least try to balance it with gold holding, to keep a fixed ratio of 50-50, because then thou hast something when it crashes, but are still invested if there are futher gains.

USisCorrupt's picture

Keep your Gold I will take SILVER and I LOVE my Crypto Currencies the most. I will be dumping my Gold @ 4500 come spring/summer for some spending cash.

jeff montanye's picture

why wait?  since you can see the future why not offer romantic advice to the lovelorn in the meantime and corral that spending cash now?

USisCorrupt's picture

Because I follow Clif High from HaplPastHuman and go with what he says.

wise_owl_says...'s picture

if you think rise in BTC is spectacular, just wait for gold. JPM is sucking up precious metals with voracious appetite. they know USD FEDERAL RESERVE NOTE (fake) was dead since 1913, zombie to be soon put into ground. 15k voidcoin says it all.

Bumpo's picture

If and When Gold and Silver take off, MANY will love its Physical nature when compared to Bitcoin. I couldn't bring myself to buy an invisible coin at $14 back in 2011 or 2012, but I rationalized as an investment when it passed to price of gold and stayed there. I invested into a reputable cloud miner, and my ROI was 3 months when it was supposed to take 5.5 months. Im not getting rich, but my contract is for a life time with $30 a day energy costs. As long as Bitcoin stays over $1060 and my mining costs are covered, and my contract lives on. Hoping it will pay for my kids college someday. Gold and Silver is my retirement plan. Good luck to us all.

Gead's picture

At least with tulips I could plant them and have some pretty flowers in my yard. I keep trying to bury Bitcoins and all that happens is the grass around where I dug dies and I've nothing but an empty hole in the ground.

Mustafa Kemal's picture

" I keep trying to bury Bitcoins and all that happens is the grass around where I dug dies and I've nothing but an empty hole in the ground."

Maybe you should plant them in that hole in your head.

At least you would know where they are

jeff montanye's picture

isn't that where most of them are planted now?

Mustafa Kemal's picture

"isn't that where most of them are planted now?"

Mine are planted on the blockchains

and my keys on my Ledger Nano s.  They appear to be growing quite well, without water and sunlight.

Have not invested much, but what little I did has turned into quite an egg. About to profit take and get a nice little tube of Liberty Double Eagles.At that point, I could lose all the crypto and still have a nice little pile of Au.

USisCorrupt's picture

Mustafa YOU are so RIGHT!

IF you have a Good Memory YOU can store the private keys in YOUR HEAD !

Those that don't adapt will always be DEBT Slaves to the Bankers with less purchasing power aka FOOLS !

Mustafa Kemal's picture

"IF you have a Good Memory YOU can store the private keys in YOUR HEAD !"

True, when I was younger I would have done that, but at this age, oh, where did I put my hat?

USisCorrupt's picture

Operative word "IF".

It's always good to have a back up in a VERY SECURE place.

HowdyDoody's picture

There is a data warehouse in Utah that is very secure. They will store it indefinitely for free.

dark pools of soros's picture

people already done that... many sold and got out every step of the way

Dontblamethegoat's picture

Until you sell it for gold/cash/blow it is worth nothing ...

FEDbuster's picture

So I guess in hindsight it should have been Beans, Bullets , Bullion and Bitcoin for a well balanced portfolio?  I still don't see survivors trading chickens for Bitcoin in a post SHTF world.  Maybe it would be a good time to trade some Bitcoin for 40 acres somewhere?

USisCorrupt's picture

If YOU were SMART tou would already have your 100+ acres of lamd well supplied along with everything else you mentioned.

My Cryptos will be for when I need to get the HELL out of this Country when it is MORE of a ShitHole than it is already, like within 3 years.

FEDbuster's picture

Run to where?  The entire world is becoming a giant cesspool.

USisCorrupt's picture

New Zealand and Antarctica are at the TOP of my list.

FEDbuster's picture

If I were a newly minted Bitcoin multi-millionaire, I would already be in Grand Cayman.

jeff montanye's picture

don't forget the mule.

portfolio for our times:  ten trillion dollars of sovereign bonds with negative yields for income and $250 billion in bitcoins for growth.

financial security at last. 

maxblockm's picture

If it's worth nothing, then who will give you gold for it?

If these places will give you gold for it, is it really worth nothing?

Bullion for Bitcoin:

If it's not worth nothing, why don't you own any? Cognitive dissonance?
zebra77a's picture

If world reserves are $70 Trillion and 1% of that tries to flow into Bitcoin, while 70% of available bitcoin is buy/hold investors of the available 16.7 million coins...

It means $700 Billion dollars trying to fit inside 3-4 million bitcoin.

$15,000 is just getting started.  Try $150,000 a coin..

It cannot be stopped, or regulated albeit the attempts of various regulator bodies..  If one exchange becomes regulated  and or taxed capital will immediately flow again through the blockchain to even more encrypted and uncontrolled repositories.

With $300 billion in market cap, it will draw the resources for it's sustainability.

The only way to stop it now is if the internet is shut down, and the only way to accomplish that is if New York and the main DNS servers are taken out. Only a few power bodies left around the world  with the resources to stage or effect that..

But the bigger question is what happens when state actors begin to circumnavigate blockades using blockchain..  AKA North Korea makes a super-K counterfeit US dollar what happens when they start defeating the trade blockade buy buying bitcoin with counterfeit notes...?





DC Beastie Boy's picture

Like Tethers USDT that Bitfinex creates out of nothing

Juliette's picture

Bitfinex does not have control over bitcoins. They have to either mine them or pay for them. So by definition they cannot scam the system with any of their own tokens, Tether or whatever. 

dark pools of soros's picture

An exchange could fake crash it by selling bogus orders but it would get exposed instantly and people leave. Unless the gov moves in and controls ONE exchange so they can force the illusion of price by their chosen ones. How many markets can you sell your shares of Amazon?

Each crypto exchange is its own damn market where the only barrier is getting fiat in and out but anyone can move their crypto to any market and do carry trades to a fro

Gold bugs will still say this is make believe bullshit and has no value

as I've said to jackass gold bugs here for 4 years over this, fuck your stupid crusty brain dust that didnt jump out of $1800 gold and get into crypto

Laowei Gweilo's picture

naive =p

if the US zionists decide to stop it, it won't be through regulation, it'll be through the CIA lol

'All Coinbase coins stolen and personal IDs sold to international hackers' that'll be their tool, not the SEC or IRS.

hey, I agree with our BTC ideal. i'm pro-crypto-future.

i'm just saying ... if and when BTC truly threatens the USD, you're better off anticipating how they go after terrorists and foreign countries than domestic securities, because _that's_ the type of threat cryptos are to them -- that it's going to wipe the Fed infidels from the face of the earth, so they'll respond in same.