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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Arnold's picture

It is thrilling to experience exponential asset growth over a matter of a year, rather than a decade or a lifetime.

That old bacteria in a jar example from fourth grade comes in handy some days.

USisCorrupt's picture

This WORLD is FULL of IDIOTS !

It is the FIAT currencies that are Madness/Tulip Mania POPPING !

Wake UP or be DEBT SLAVES for LIFE !

eatapeach's picture

My copy also has Gustav LeBon's 'The Crowd', which was worth re-reading after 9/11. The image sells everything quite well. False flag playbook and investment wisdom go hand-in-hand.

maxblockm's picture

If you know so much about markets, you must be rich?

I might listened to Mike Maloney talk about wealth cycles because he has skin in the game and he's workin it.

sessinpo's picture

 

Thoresen 

Read 'The madness of crowds.'
It's Tulipmania all over again

----

Yes, please read again and you might realize we are a few years from the top. I'm thinking maybe a repeat of the dotcom bubble but this time maybe 2020 or 2021.

Endgame Napoleon's picture

But it is worth so much more than $600 now. I do have any idea how to buy a Bitcoin, and since I can’t afford it, I would feel like an idiot for even researching it. It is really just for people who have extra money to bet with. It definitely seems worth the effort for them, though. They will regret it if they do not do it while BTC is skyrocketing. It will become mainstream and lose its power to increase your money a 1000-fold. It will just be like a savings account when it becomes the norm, right. It will be a store of value more like gold that goes up or down a little, but basically holds its value even in a crisis.

11b40's picture

You realize you can buy pieces of crypto coins, right?  Had you bought $100 of BTC a few weks ago, it would have increased to almost $300.  Is their risk?  Of course, but there is also risk in standing still and doing nothing.

BarkingCat's picture

That's how I did it. First I book $200 worth, to see how the process works and then few days later I added $800 and then another $1000.

That is my limit for what I call lottery ticket investment.

 I am tempted to buy more as I see it skyrocket but I also realize it's human nature and my extreme greed is kicking in.

So I am resisting that urge.

JohnGaltUk's picture

Make no mistake, people are not investing, its gambling.

maxblockm's picture

You presume to know the minds of people, and whether they did their own due diligence or not.

It's investing if you know the risks and calculate risk/reward.

D.r. Funk's picture

I don't believe whatsoever this isn't 'being enacted'

Partly, as a slap in the face to overall still-active and subsisting equity econ permabears

Mainly, as a blowing up meaning an explosion by aided inundation, a pesty sprouting threat to power order

Look at the bigger picture (and) those assertions make sense. We know, or has been reasonably extrapolated, they hate the idea that some stock shorts&bears haven't been shaken. I believe, if one of the inner circle power memebers is reading this, it's making them red, steamed, and ruffled. You know it, if that's you, reading this. You can kiss my, cheekprint. And the notion of engineered btc bubble schemata has reasonable observational logic on it. Not a mania. Not the right word. Sheep are acting accordingly but this has design

Ghordius's picture

it's the Establishment that decides if something is Anti-Establishment... or not

example: China banned BitCoin. Japan did not.

affirmed_78's picture

Don't forget the power of this.  Remember that one election where that one guy won, I think his name was Trump?

BabaLooey's picture

Totally...................................tulip-ish

BabaLooey's picture

Absurd.

The only word for it,

HRClinton's picture

SELL, SELL, SELL!

DO IT NOW!

EmeraldWI's picture

Hopefully the t-shirt isn't UPS strike late, "I Bought BTC/USD and All I Got Was This T-Shirt"?

charlewar's picture

Who is really buying buttcoin now except speculators...just like Holland's tulip bulb mania hundreds of years ago?

Crazy Or Not's picture
  • $12,000-$13,000: 17 hours
  • $13,000-$14,000: 4 hours
  • $14,000-$15,000: 10 hours
    (insert here when the smart money leaves).
    $20,000 - $00,000 1.2 seconds

    errr ....doesn't wallet hacking and transfer of stolen BTC stimulate the market?

    Fugazzi 

EddieLomax's picture

Wallet hacking = Bullish

RISK OFF

 

 

 

If blockchain technologies are the future, there is no way central banks, backed by governments, will get together to create their own one and thus overnight set the value of everything else to zero.

Crazy Or Not's picture

>Bullish... +1
Given Bankers have a history of:
Funding/profiteering from all parties in War,

(insert additional examples showing zero ethics, capriciousness to infinity  etc )

Does anyone think they'll sit back in resignation going "oh well, we had a good run" while BTC wipes them out?

Either they'll run BTC - if they don't already, or find a way to destroy it while filling their pockets. 

3rdWorldTrillionaire's picture

Wipe out, en route... CBOE shorts on massive long dump. Coordinated destruction to reign in the global Phoenix (2018)... happening.

Crazy Or Not's picture

Wipe out, en route...

Getting into the specifics of timelines is practically impossible (for me), and I'd hate to call a date. I've said here before PetroYuan /Rouble launch can be a market exit trigger etc. The larger "Syrian war is a pipeline blockade" argument is also part of the conflagration. Externalities may appear disconnected but extend powerful influence on where, when & how investors act.

Somalia & Yemen coastal area oil basins have Oil Corp's itching to develop once USF/CiA & pals mop up there (only offshore is critical). Iran's response, who are fragmented by additional OPEC players (Iran as military actors being a proxy of China/Russia) and who in turn use local proxy forces to destabilise / push for NON-Saudi control of region... It's hard to see specifically how this will unfold over next 3-7 years. Aside to endangering significant US Saudi arms deals, & or house of Saud power plays.

What will happen is as activity ramps up - market returns will be stronger in defense related industries, (because guns will come from somewhere) and those holding keys to BTC Tethers may see fiat world markets as more attractive and pull plug, especially in face of harmful action to them by electric power compaines, and or taxation retrospectives to crypto profiteers, mining licence screening? etc etc...

Endgame Napoleon's picture

Could the too-big-to-fail banks buy the cryptos, setting up the programmers in their huge bank buildings? Could there be a Bitcoin acquisition, making it Establishment?

Crazy Or Not's picture

IDK - but IF BTC market is genuine (Chuckles under breath), then containment is urgent from POV of State actors. 
Control of Tethers is biggest risk. Origins of BTC use as deep web off jurisdiction exchange suggests some Tether key holders as edgy, and at least able to act on whims of their own judgement - like putting all BTC in one wallet that "suddenly" gets hacked.... go figure. Allowing BTC to bloom and integrate with their Fiat is like putting QE in hands of a 12 year old.

The scary part is if BTC was started by NSA etc as some suggest, and (((they))) want it to bloom and fully flower and BTC QE's fiat to death.... then what happens next? Secure cashless global system (possibly kilowatt hours currency) tied to your cellphone. Every transaction always monitored forever.

Rickety Rekt's picture

It was always going in that direction anyway. Eventuality of technology. Just wait for how nice it will be for police drones to fly around giving speeding tickets, j-walking tickets, man spreading tickets, etc..

ZH Snob's picture

well, 20K by new years is a real possibility.  glad I bought all mine last year.

all-priced-in's picture

The way people look at -

 

A gift of $10K that is just handed to them

 

VS

 

You just worked all year and managed to save $10K

 

Are totally different.

 

Maybe Ron Paul should find some people that worked and managed to save $10K and ask them the same question.

 

I bet the choices would be totally different.

 

 

ZH Snob's picture

I guess you guys are right.  Buying BTC last year was a really bad decision.

HRClinton's picture

"BTC Berserker"?  

TD has BTC. A HODLer.

Pot meet kettle.

fx's picture

LMAO; gdax is a fraud! No other exchange had a print higher than 16.3k and there they went 3,000$ above that? Are you kidding me?

It's almost as if AMZN traded at 1,100$ at the Nasdaq and 1,400$ at the same time at BATS. Some people got mightily screwed there. As a matter of fact, coinbase/Gday always charge about 5 % higher prices for buying any crypto and the bid-offer spreads are ridiculous. A fraoud, like Bitfinex, even though a different kind of fraud.

 

That said, BTC is for real , at least for now, and I absolutely love the ignorant, reflexive "tulip bulb" comments that seem to mushroom over here with every 1,000n $ advance....

As for Novogratz, he is right, 90 % (at a minimum) of non-bitcoin tokens will end up worthless (maybe bitcoin itself, too), but SOME will make it.  This is the time to diversify into non-Bitcoin "tulips" like BCH,ETH and some others that I will keep to myself....

johnduncan78's picture

Can I buy bitcoin with cash? If so, I want to buy $100,000 worth and spend it at Apmex for gold.   NO PAPER TRAIL !

quadraspleen's picture

At this point that is the only serious response (and I'm a long-time BTC HODLer)

Haus-Targaryen's picture

If you're not seeing this price action and taking some/most money off the table youre nuts. At least cover your initial investment. 

Jaspergers's picture

I started with 20 BTC at 250$ now down to 1 which I will hodl as long as I can. Still 80% in metals and the rest in my business.

wcole225's picture

I bought 1000 BTC when it was at $1. I've ridden it all the way and just cashed out at a cool $13 mill. Wait. What?....oh never mind I was day dreaming. The truth is in aug/sept at around 4K I think my son said dad take that shitty silver you bought in 2011 and convert to BTC and I laughed. Not laughing now.

CHX13's picture

Hey, I'm with ya... However, it's not about who is laughing now, it's who survives in the end (with nobody left laughing).

quadraspleen's picture

My initial investment was £1000 four years ago. I've more than covered it and still have irons in the fire, don't you worry about that ;)

The Divided Stoopids of DuhMerica's picture

You did well.

I've been in since Feb 2010

quadraspleen's picture

You did even better :) I bought 5 as a bit of a joke and then rotated other weird shitcoins into BTC while taking some profits..I only have 6 now but I'm ok..the top isn't in yet..I think we'll see some exciting dips and peaks after the wankers start shorting it, but I still think it has some legs..I'm not in denial, either, as I haven't put myself into debt or remortgaged my house to get in

tmosley's picture

It IS a new paradigm, but that doesn't mean that BTC will survive.

Spaced Out's picture

Mosley, you poor, bleating, fucking idiot.

You were on the train and you gave away your ticket for a shitalgo coin, which you can't even dump while you watch the price plummet.

And STILL, you offer an opinion.

Lemme guess....not an argument?

Hahahahahahahahah

tmosley's picture

Gotta love how kikes laugh about using non-arguments to attack the goyim.