Bitcoin Explodes To New Record High Over $5200

Having bounced back from China's exchange closures and Dimon's damning, Bitcoin just broke above its pre-China ICO ban highs and traded above $5000 for the first time in history (even as Russia decided to block local access). There was no looking back as the cryptocurrency is now trading $5240 - a new record high.

As Coindesk notes, prices had dropped to a low of $2,980 in mid September after China banned token sales and local cryptocurrency exchanges. However, in the subsequent days, BTC quickly regained poised, reportedly due to a pick-up in trading volumes in Japan, South Korea and other markets. The rotation of money out of the ether and ethereum-based coins and into bitcoin also helped the cryptocurrency scale new heights.

Increased institutional interest seems to have played a role in boosting bitcoin prices. For example, a 'bitcoin desk' at Goldman Sachs would certainly be a game changer. News had hit the wires earlier this month that Goldman Sachs is considering a brand new operation which would be dedicated to bitcoin trading.

Still, while skeptics continue to call bitcoin rally a bubble, the price action analysis indicates no serious trouble ahead for the cryptocurrency.

Resistance is seen at $5,378.56 – 161.8 percent Fibonacci extension of the move from the Sep 15 low – Sep 18 high – Sep 23 low.

As Iqbal V. Gandham, Managing Director at eToro UK, commented:

“Recent criticism from industry and regulation crackdowns in China and Russia spooked markets in recent weeks and caused the Bitcoin price to plummet. So we expect some investors to be surprised by Bitcoin bouncing back to this record high so soon afterwards.

 

“Yet Bitcoin was designed to operate outside of the influence of governments and central banks, and is doing exactly that. So to us, this bounce back in price is no surprise.

 

“In reality, whilst we’re excited to see Bitcoin hit this record high, this is just the beginning for Bitcoin. Bitcoin has a lot further to go than this price point to become a real world currency, as it was designed to one day be. Most are unaware that in future people will not spend a single Bitcoin. Instead people would spend the underlying tokens, called Satoshis, in the same way we spend coins and not a bar of gold. A single Satoshi is only worth $0.00005 currently. Clearly, for this to gain spending power, the price of a Bitcoin will need to be significantly higher than $5,000.

 

“This price peak may boost more support for the bubble argument we’ve seen from investors in recent months. But we continue to argue these calls on bubble territory are coming far too early in the story for Bitcoin.

 

“This record is an exciting milestone and sign of market confidence in the outlook for Bitcoin and the underlying technology behind the cryptocurrency, Blockchain. But we expect many more milestones like this to come.”

Furthermore,  appears Mike Novogratz may be right after all... while bitcoin is a bubble, the mania is justified, because it is a technological advancement that promises to fundamentally alter our lives.

"I can hear the herd coming" Novogratz said.

And bubble or not, Novogratz concluded eloquently on the extreme nature of cryptocurrencies' potential...

“Remember, bubbles happen around things that fundamentally change the way we live,” he said.

 

“The railroad bubble. Railroads really fundamentally changed the way we lived. The internet bubble changed the way we live. When I look forward five, 10 years, the possibilities really get your animal spirits going.”

Bitcoin is set to become "the biggest bubble of our time," he added, and could reach $10,000 very soon due to fast-building interest.

Comments

aPlayer tmosley Thu, 10/12/2017 - 09:28 Permalink

One of the largest global brokers for algorithmic traders with UK FCA regulation enabled trading with Bitcoin (https://tickmill.com/news/) two days ago to its full client base in 185 countries. Following this move, the price of Bitcoin has been going up pretty much non-stop. Tickmill boasts +20K active clients with monthly trading volume exceeding $70 billion so having them now support Bitcoin is actually quite a big thing and will provide a lot of new demand for Bitcoin. 

In reply to by tmosley

ilion aPlayer Thu, 10/12/2017 - 10:38 Permalink

Tickmill is big so it could have some influence on Bitcoin price. They generally have more sophisticated algorithmic traders as their clients so if they would convert even a small number of them into Bitcoin traders then that would bring on significant demand. Tickmill provides maximum of 25-to-1 leverage on Bitcoin on fully segregated accounts which are protected by the Financial Services Compensation Scheme (FSCS) of UK which gives more conservative investors a much better environment to trade Bitcoin.The CFO of Tickmill, Illimar Mattus, has a comment on his LinkedIn profile (https://goo.gl/YpYXZg) that the next big jump in acceptance of Bitcoin by institutional investors could come when somebody would "... launch a futures contract or an ETF on some serious exchange. That would also help us a lot because it is actually very difficult to find liquidity providers where to hedge the risks."

In reply to by aPlayer

covfefe MICdotard tmosley Thu, 10/12/2017 - 11:22 Permalink

I don't know (factually) who created the internet. Presumably it was Al Gore ~ lol (who as far as anyone knows, is also Satoshi). I'm ok with using the internet BECAUSE ITS FREE                          That's the end of it.                   I don't care who created it (but if I was paying for it, I would). 

In reply to by tmosley

GUS100CORRINA tmosley Thu, 10/12/2017 - 09:28 Permalink

BITCOIN is doing exactly what GOLD and SILVER commondities should be doing. The difference: BITCOIN is not controlled by CBs and CENTRAL BANKS yet unlike the GOLD and SILVER commodities. The behavior of BITCOIN just proves beyond a shadow of a doubt that that corruption and manipulation are rampant within the COMMODITIES MARKETS.We call this RACKETEERING on STEROIDS.

In reply to by tmosley

Ajax-1 tmosley Thu, 10/12/2017 - 09:48 Permalink

A week before Ms. Brainard of the Fed gave her speech on distributed ledgers, Janet Yellen, was asked about the technology at a congressional hearing. She said that “innovation using these technologies could be extremely helpful and bring benefits to society.” So why would Janet Yellen praise a technology if it stood a chance of bringing down the power and control the Federal Reserve has enjoyed since 1913?

In reply to by tmosley

spqrusa tmosley Thu, 10/12/2017 - 14:21 Permalink

I know Satoshi Nakamoto and she HATES CIA, FED, IRS, CBs.The notion that the same Keystone-Cop Fuck-Nuts who run these agencies can do anything remotely innovative is ridiculous. These are the same people who sat around with their thumbs up their ass during 911. The same people who are so corrupted by money and power they have no time for "innovation". Its just a glorified Welfare-Warfare State. DARPA did NOT create the internet - another bold-faced lie from the propaganda machine MSM.The internet was created by ATT and others when TCP/IP was deployed over ethernet. DARPA just jumped on for the ride. DARPA is full of Welfare Queen Fools.

In reply to by tmosley

Justin Case MagicHandPuppet Thu, 10/12/2017 - 11:41 Permalink

People are now creating scripts to mine cryptocurrencies using your computing power while you visit any websites which employ these scripts. I first learned about this when The Pirate Bay used such a script in certain sections of their website.

This is a very interesting development and it will be just as interesting to see how wide-spread this becomes. Just days after TPB was found running such a script, there was already a cryptocurrency miner WordPress plug-in on wordpress.org with 300+ active installs as of Sep. 27, 2017.

At first i saw this as malware and, in fact, i would say it was indeed malware when The Pirate Bay introduced it secretively and didn’t make it an opt-in option for its users. It also appears that ad-blockers, including uBlock Origin, as well as anti-virus software vendors, are targeting these mining scripts. After giving it some thought however, this seems like it might be an excellent way for independent journalists and others to generate some “cash” to support their work.

In reply to by MagicHandPuppet

tmosley VD Thu, 10/12/2017 - 07:59 Permalink

I offer alternatives, not just empty insults, and I only insult those who are actively hostile.You claim to have offered solutions. Prove it. If you don't want to find the post, just reproduce your advice so we can make fun of you when whatever you picked goes down.If you don't do it, you affirm that you are a complete and total loser.

In reply to by VD

VD tmosley Thu, 10/12/2017 - 08:03 Permalink

“We have seen how Bitcoin has transformed a payment unit into an asset, which is bought in order to obtain a high yield in a short period of time. This is the definition of a pyramid.” what has over 6k yrs of history (ie old) & is on sale (thanks in very small part to crypt0-ponzi)?

In reply to by tmosley

tmosley VD Thu, 10/12/2017 - 08:12 Permalink

What the fuck are you talking about? I was bullish silver since 2007 you mong. I had nothing to do with "Crash JPM, Buy Silver".I sold it because its garbage, as you will find out as energy prices continue to decline. The bull case was hijacked by crypto, and rather than bitch and moan and cry about it online, I actually took some initiative.

In reply to by VD

Ramesees tmosley Thu, 10/12/2017 - 11:37 Permalink

VD - If you had bought Bitcoin when tmosley started talking about it on these boards you'd be fucking rich right now.  That could change - I mean Bitcoin will correct at some point and decrease in price, and it very well could crash and go away entirely (but then, an asteroid could also hit us), but tmosley has been right about this call. You have to give him credit for being right on this call, because he objectively was. 

In reply to by tmosley

Michigander VD Thu, 10/12/2017 - 10:19 Permalink

I really get tired of this 6,000 years of history bullshit. It may have 6,000 years but our life span is significantly shorter. I can't wait 200 fucking years to be right...neither can you if you were honest. My bitcoin has done more for me than bullion could ever hope to. Now if bitcoin crashes, as you so childishly hope it will, in favor of bullion, I again will win. Bottom line is, my ass is covered either way. Yours isn't.

In reply to by VD

Tuetone Michigander Thu, 10/12/2017 - 11:11 Permalink

I've owned silver and gold since the 80's in substantial amounts along with other more traditional investments. I hardly look at the prices now although I still own them. I've put 1/12 of my portfolio into Crypto's back in July/August and they've done quite well so far... Pretty exciting stuff as prices are moving fast!I'm watching closely for a drop so I can sell though. I sold most already during the big drop in Sept and managed to buy back in at a lower price than I sold at once it turned around. Bubble or not, one can make money on this stuff.I'm kicking myself for not investing sooner as I have been aware (and had a negative view) of Bitcoin since they were worth a few dollars.

In reply to by Michigander