Bitcoin Surge To New Record Highs Above $4800 Amid Renewed ETF Hope

Bitcoin has surged to a new record high this morning over $4850 amid increased debt ceiling anxiety, continuing demand from South Korea and Japan amid the North Korea chaos, a potential short squeeze, and renewed hopes of SEC approval of a Bitcoin ETF.

The six biggest virtual currencies are all higher today...

NOTE - Litecoin and Veritaseum are among the day's best performers.

Bitcoin is now up 165% from pre-Fork-anxiety lows in late July...

 

Bloomberg's Eric Balchunas notes that Dalia Blass is set to head the SEC Division of Investment Management - which regulates, among other things ETFs. What is of note is that she is a lawyer at Ropes & Gray - the same form representing the Winklevoss twins Bitcoin ETF case. This has prompted excitement that a 'proper' (not GBTC, see below), Bitcoin ETF may be sooner than expected.

As CoinTelegraph reports, the SEC famously rejected two Bitcoin ETF proposals earlier this year, citing largely unregulated markets. They did leave themselves an out, however. The Commission indicated that in the event that a regulated futures market for Bitcoin were developed, they might reconsider. Not long ago, the Commodity Futures Trading Commission (CFTC) gave LedgerX permission to create such a futures market. The SEC agreed to hear an appeal from the Winklevoss twins earlier this year, but few watchers expected the twins to receive a different answer.

With Blass at the helm and regulated futures markets being developed, however, this could change.

Some have argued that the recent rise in the price of cryptocurrencies is driven by anxiety over the debt ceiling in the US...

And also of note, as Alistar Milne notes, there are now more open short Bitcoin positions than longs on Bitfinex, potentially causing a short squeeze...

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Finally we note that not everyone is buying into Bitcoin...

First, GBTC (Bitcoin Investment Trust) - which we have discussed numerous times (here and here most recently) - made some headlines overnight as it topped $1000 (implying a $10,000 price for Bitcoin) and Citron's Andrew Left went on CNBC and explained why he was short...

 

The reaction this morning was an immediate dump (but buyers came right back in)...

 

Despite still trading at over 100% premium to NAV...

Aditionally, CoinTelegraph reports that David Ader, chief macro strategist at Informa Financial Intelligence, is now trying to show how Bitcoin's gains resemble that of the Nasdaq Telecommunications Index before the tech bubble burst.

An overly frothy market

Placing Bitcoin’s growth chart over that of the Nasdaq Telecommunications Index, and its subsequent rise, Adler is surmising that Bitcoin has hit the same peak and thus should be ready to plummet in a similar style.

Nasdaq reached its peak in 2000 before a monumental crash and for Adler, the similarities are there for Bitcoin’s run to this most recent all time high.

"This is the price chart for an overly frothy market, in my opinion. I just don't see anything quite as comparable to this in bubblelicious terms," said Ader, a former top-rated bond market strategist.

"I think it's going to come to a sorry ending," Ader said. "I don't know anybody who's actually used a Bitcoin for any purpose legal or otherwise. This looks like an overly frothy market and frothy markets lose their froth."

Comments

The Cooler King (not verified) 38BWD22 Fri, 09/01/2017 - 14:56 Permalink

Can somebody please LINK me to the 'BITCOINS 4 HOUSTON RELIEF' fund? ~~~Sorry, but I was wondering why JJ Watt managed to accrue $13 million in donations (in 2 days)...   http://www.espn.com/nfl/story/_/id/20528610/jj-watt-hurricane-harvey-rel...   whilst the HOUSTON BITCOIN COMMUNITY messageboard doesn't even have a 'post' on their boards since May 8, 2017...   https://www.meetup.com/houstonbitcoin/boards/?pager.offset=0   I'm assuming you BITCOIN people have INTERNET... Right?  'charitable donations' are, in fact a tax write-off... but I don't suppose anyone of you will be needing any of those.

In reply to by 38BWD22

batushka Yukon Cornholius Fri, 09/01/2017 - 17:18 Permalink

Which brings us to a good question:  what's the trusted way to purchase and sell? I've been reading horror stories of crypto getting stolen from exchanges from insiders who have access to the accounts.  A few days ago I decided to give crypto a try and signed up for a Kraken account to try to purchase some Monero (XMR).  While waiting through the verification process I decided to read up on how to navigate Kraken - and read about the above horror stories.Is there any credible tutorial on how to actually trade crypto safetly?  Stocks are pretty easy to buy and sell, the platforms solid and quick.  I'd like to give crypto a try but these platforms seem weak and very questionable.Thanks in advance!  

In reply to by Yukon Cornholius

rbianco3 batushka Fri, 09/01/2017 - 18:18 Permalink

I've had very good luck with Coinbase the last few months, before that - there were more than a few kinks which ended up helping me in the long run- in periods of heavy selling coinbase went MIA- for hours- beautiful thing was I would have been shaken out two times- I was upset about it.Can't remember the last time that happened - trades fast- dual authentication with Google's online number generator thing. I keep the two factor on at all times- feels safe but limited history. Amounts in lower five figures- only complaint now are no cool charts/tools like Etrade had and prices WAY higher including juice on the buys and sells. Active trading can work but plan on burning several percent round trip. If I remember it's $2.99 per $400 trade plus a twenty five or so cent haircut each way on price. Profits are so insane- not worth compaining about--- yet.If you know someone using Coinbase- they'll win a $10 bounty for the referral. Good luck. Oh if you buy physical from JMB, (with bitcoin only) you get almost cash price- nearly instant clears- save commision on the BTC profit taking, faster than a wire transfer out. Don't expect an Etrade/or other professional brokerage tools- they barely have the account total on one screen and I chart using external software. Do at least tiny position to familiarize also- too risky to not play at all while everyone elses balance sheet is inflating like crazy. 

In reply to by batushka

rbianco3 38BWD22 Fri, 09/01/2017 - 18:07 Permalink

Same on the second- saves you the hefty brokerage sell fees when you take profits in physical. Odd thing happened on one of the > 5k orders- Coinbase prompted me, asking if the Bitcoin was going to another brokerage... hmm dunno why- either they didn't want to lose customer or it's government tracking.Have used same company five orders totaling five figures last two months- all but one transactions cleared near-instantaneously- one took almost the full ten minutes to clear in very heaving trading (selloff) got almost cash discount- arrived second business day after order- winner chicken dinner lots fun deliveries.

In reply to by 38BWD22

aloha_snakbar Fri, 09/01/2017 - 14:31 Permalink

The Birth of BitconTwo friends, Bob and Satosh are sitting around after an evening of consuming copious amounts of some especially wicked dank. Bob says to Satosh:Hey Satosh... I have a genius ideaYeah, what is it?You know that app you coded...the one that churns out the useless SHA algorithms?Yeah?LOL...lets sell them as digital currencies!Dude...you are fucking wasted, here, have another bongNo, seriously. We get that graphic artist you know create a slick image of a 'gold' coin, and then we can further confuse the rubes by telling them their 'coins' have to be "mined", as if they were real, physical metals!Dude... you are insane! What kind of moron would buy something like that?Bob: Oh... I dont know. Remember that now worthless token you paid stupid money for on WoW?They sit there and stare at each other for a moment, and then both burst out into torrents of tear stained laughterThey are still laughing today.The rest is history

skywalker22 Lore Fri, 09/01/2017 - 15:48 Permalink

Dude, you totally do not get it. The blockchain is a revolution that is bringing truth and honesty to all industries. Once you attached blockchain to a business process, middlemen are eliminated, costs are reduced, and potential for criminal activity is curtailed. Want to eliminate rigging of silver market, apply veritaseum to COMEX.Yes, there are a lot of scammers right now trying to make a fast buck with useless coins. Do your homework and invest in the facebooks googles and amazons of tomorrow that this industry is birthing now. Forget tulip coin, invest in litecoin, which is setting up to be our future means of exchange after the banking system crashes.Open your mind, or be left behind.

In reply to by Lore

skywalker22 Lore Fri, 09/01/2017 - 15:48 Permalink

Dude, you totally do not get it. The blockchain is a revolution that is bringing truth and honesty to all industries. Once you attached blockchain to a business process, middlemen are eliminated, costs are reduced, and potential for criminal activity is curtailed. Want to eliminate rigging of silver market, apply veritaseum to COMEX.Yes, there are a lot of scammers right now trying to make a fast buck with useless coins. Do your homework and invest in the facebooks googles and amazons of tomorrow that this industry is birthing now. Forget tulip coin, invest in litecoin, which is setting up to be our future means of exchange after the banking system crashes.Open your mind, or be left behind.

In reply to by Lore

skywalker22 Lore Fri, 09/01/2017 - 15:48 Permalink

Dude, you totally do not get it. The blockchain is a revolution that is bringing truth and honesty to all industries. Once you attached blockchain to a business process, middlemen are eliminated, costs are reduced, and potential for criminal activity is curtailed. Want to eliminate rigging of silver market, apply veritaseum to COMEX.Yes, there are a lot of scammers right now trying to make a fast buck with useless coins. Do your homework and invest in the facebooks googles and amazons of tomorrow that this industry is birthing now. Forget tulip coin, invest in litecoin, which is setting up to be our future means of exchange after the banking system crashes.Open your mind, or be left behind.

In reply to by Lore

rbianco3 Lore Fri, 09/01/2017 - 18:23 Permalink

I went in like it was that game where when the music stops and you don't have a chair you lose.Some people did great with Tulips- some not- most now are way into free tulips- it's a high risk/ high reward propo - I'd not bet the farm or the tractor- maybe a used truck.

In reply to by Lore

HRClinton aloha_snakbar Fri, 09/01/2017 - 15:42 Permalink

I bought BTC a few years ago at $600.I'm just sitting on it, and will continue to do so. As only one of numerous tools in my investment toolbox, its purpose is not to make a quick buck.It's sole purpose is to remain a hidden, liquid and mobile reserve for any personal doomsday scenario - to be the "Hidden Money Of Last Resort". It is NOT intended for shady uses. It is a legitimate parachute, a liferaft. Period. I can access it in any domestic or overseas location - which you can't do with cash or Au.  I.e. good luck with moving tens or hundreds of thousands in cash or Au across borders. Sometimes, the solution to a problem is staring you in the face - if only you shift your vantage/view point. Alas too many peeps get married to their vewpoints, and refuse to grow and move on.

In reply to by aloha_snakbar

vega113 aloha_snakbar Fri, 09/01/2017 - 15:44 Permalink

Not exactly. Satoshi had to invent the solution for Byzantine Generals problem first. The solution allows parties to reach a consensus over unsecured network as long as most of the participants follow the predefined rules. It was a genius solution.
And, they didn't sell those coins to anyone. People who so saw the potential just invested their own time, electricity and CPU into mining bitcoin and then used these bitcoins to transact with each other.

In reply to by aloha_snakbar

abyssinian (not verified) aloha_snakbar Fri, 09/01/2017 - 16:50 Permalink

clowns laughed at me when I bought bitcoins at $800, clueless pretenders laughed at me when I bought more Bitcoins at $1200, Mr. wannabe know it all laughed at me when I bought more bitcoins at $2000, Jealous dbags made fun of me when I bought more Bitcoins at $3000.  Last couple weeks, most of these clowns, pretenders, wannabe know it alls, dbags were all calling me and asking how they can buy bitcoins and cryptos.  I didn't laught but showed them how to buy bitcoins and othe cryptos.  While I am reading this post and seeing there are still tons of clowns, pretenders, wannabe know it alls, dbags in this world... which means I know there are much more room to grow for bitcoins and other cryptos! Have a good weekend everyone cause I will. 

In reply to by aloha_snakbar

rbianco3 abyssinian (not verified) Fri, 09/01/2017 - 18:47 Permalink

I chickened out on buying Bitcoin at around $100.Anyone have a guess as to the percentage of adults having purchased crypto? My guess is less than 2 percent- like the early days when only the super geeks carried large square smart phones and it took ten years for the market to saturate. Lot's and lot's of bubble room assuming none of the risks pops them permanently. It's too large of an opportunity to not play at all- imho- unless your risk tolerance is at zero point zero. Can't win if you don't play.

In reply to by abyssinian (not verified)

RedDwarf Fri, 09/01/2017 - 14:36 Permalink

If you want to grow your wealth, buy some crypto.  If you want to join the crowd of crypto-haters and be part of the 'cool club' do so, but in a few years time you'll be staring at that monstrous lost opportunity.  Then you'll either regret it, or turn into one of those people who is forced to go nuttier and nuttier as their cognitive dissonance grows.

vasallo7g Lore Fri, 09/01/2017 - 15:30 Permalink

its a reference of value, and no its not going to fail, the fed has been trying for a while now and it has only made bitcoin strongeryes they may succed in crashing bitcoin, but the cat is out of the bag now, cryptos are the future of moneyand there is no bad news regarding cryptos no gold somewhere that can dissapearwhat do you think people is going to do when they realize that dollars are not exchangeable for gold as they were told so in school, and that they have printed them without any collateral? that is going to be the real stampeadeget your bitcoins now or weep later

In reply to by Lore

Lore vasallo7g Fri, 09/01/2017 - 22:04 Permalink

I know, I know:  "This is the next big thing," "It's different this time," and "You've gotta be in it to win it!" I've Heard That Song Before - Frank SinatraIt seems to me I've heard that song beforeIt's from an old familiar score I know it well, that melodyIt's funny how a theme Recalls a favorite dreamA dream that brought you so close to meI know each word because I've heard that song beforeThe lyrics said, "Forevermore" Forevermore's a memoryPlease have them play it againAnd I'll remember just when I heard that lovely song beforeIt's funny how a theme Recalls a favorite dreamA dream that brought you so close to mePlease have them play it againAnd I'll remember just when I heard that lovely song before

In reply to by vasallo7g