$19,000: Bitcoin Hits New All Time High After Burst Of Asian Buying; Bigger Than Wells, Wal-Mart

Having traded in a relatively narrow - for bitcoin - range of $16,500-$17,500 over the past week, the world's most popular cryptocurrency jumped to new all time highs following the latest (unexplained) burst of buying out of Asia, with another Saturday surge in volumes emerging out of Japan and Korea.

Bitcoin is now up over $1,200, or 7%, in the past 24 hours, last trading at a new all time high of $19,000 on the coinbase exchange.

As a result of the latest push higher, the market cap of bitcoin is now over $318 Billion; to fund the bitcoin spree, Ethereum, Litcoin and various other cryptos have seen some modest liquidation, and have not enjoyed Bitcoin's latest dramatic ascent.

As of Saturday morning, the total crypto space market cap surpassed half a trillion, and was above $560 billion at last check.

Following Saturday's surge, Bitcoin's YTD return is approaching 20x, while ethereum remains the best performing major crypto, up more than 70-fold YTD.

Also, for those keeping track, Bitcoin's market cap is now greater than Bank of America at $302 billion, as well as Wells Fargo ($295BN), Wal-Mart ($288BN), and Visa ($257BN). It is rapidly approaching Exxon at $352BN, but the real target is JPMorgan, whose $368BN market cap is now less than $50BN away.

While bitcoin has added more 30% to its value in the past week, trading has been slightly calmer than the wild price swings the market has seen in recent weeks, with volatility lower since the launch of bitcoin futures from Cboe Global Markets on Sunday. Market-watchers said bitcoin’s price was being lifted by the launch of rival CME Group’s bitcoin futures contracts on Sunday.

“The hope (is) that futures signal the unlocking of institutional money into the digital arena and (that there will be) a rapid demand increase and ratification of the technology and its principles,” said Charles Hayter, founder of industry website Cryptocompare.

Still, outside of the crypto market, worries continue to grow about the amount of money piling into the space with the most vocal critics being those who have so far missed the entire move. Chief among them is A study by Anglia Ruskin University, Trinity College Dublin and Dublin City University released on Friday said bitcoin could pose a threat to the financial stability of traditional currencies and markets, something which Janet Yellen denied earlier this week.

“Our evidence finds that the price of Bitcoin has been artificially inflated by speculative investment, putting it in a bubble,” said Larisa Yarovaya, one of the report’s authors and a lecturer at Anglia Ruskin University. “Although bitcoin is not regulated by governments, it could still have a knock-on effect on traditional markets due to the interconnectedness of cryptocurrency markets with other financial assets.”

Well, of course bitcoin is a bubble: as we first showed last week, it's now officially the biggest bubble in history, surpassing the "Tulip Mania" of the 17th century:

The problem is that everything else is also a bubble. And as Stanely Druckenmiller said last week, until the "everything bubble" bursts, bitcoin is safe. The problem is that if and when the "everything bubble" does burst, it would most likely result in war as trillions in artificial "wealth effect" are wiped out; in this context what happens to bitcoin would be irrelevant.

Meanwhile, for those who missed it, last week Deutsche Bank laid out who it believes is behind the relentless and dramatic surge in bitcoin:

An 11 December Nikkei report stated that 40% of cryptocurrency trading in Oct-Nov was yen-denominated. Japanese traders have reportedly come to account for nearly half of cryptocurrency trading since China started to shut down cryptocurrency exchanges, and this is said to be widely known among industry insiders (various estimates exist). Japanese men in their 30s and 40s who are engaged in leveraged FX trading (or who used to trade but have stopped) are driving the cryptocurrency market.

So is "Mr. Watanabe' proving more powerful than all the world's central and commercial banks, and most of the world's establishment economists, all soo desperate to shut down the "bitcoin bubble" to preserve faith in fiat currencies and traditional equity investments? Juding by the now daily record highs in the cryptocurrency, the answer - for now - is a resounding yes, which is clearly a benefit for all those who are still long the crypto such as these guy...

Comments

rbianco3 tmosley Sat, 12/16/2017 - 13:20 Permalink

Until the two year trend breaks. I'm w/ Mr. Mosley on this within reason. But I plan exits and it gets tricker each day.The 1 week candlestick chart explains it better. There isn't any period on that chart in which you'd have been inclined to "run for the exits", not a single one from 2016 to essentially 2018. I that isnt a sales pitch for HODL than you don't like speculative investment or you don't like the concept- and to each his own. Those of us that believe in the (religion if you want) that's what we are doing and when/if we lose it all we won't blame you or come here crying. But bringing friends/family is the first thing you think of when what you believe is an epic opportunity. So easy on some of the guys wanting to help - even if many don't want it- it is a Bitcoin article. Peace/love.

In reply to by tmosley

nope-1004 balanced Sat, 12/16/2017 - 12:43 Permalink

Whether I like or dislike something matters zero.  I like a form of money outside of CB control.  Unfortunately, I'm not blinded by my bias and a quick return like so many of you are.  I see the merit in blockchain advancement but also see a US military fully prepared to back its existence by pumping the USD until the end.  To think that a group of speculators in something ether based can bring down an empire is totally silly.Panic for the exits will surely come because this has blown too fast, too hard, and clearly due to nefarious means (tethers).  If you put your faith in that kind of thing, then wow...... is all I have to say.  

In reply to by balanced

New World Chaos troubadourcapital Sat, 12/16/2017 - 12:58 Permalink

Well, Asians seem to be natural-born savers, so when their central banks spend decades abusing the good nature of their people, the people will naturally channel their savings instincts elsewhere.  Bubbles are the inevitable result. Remember, the final bubble is gold.  Anyone here who has serious BitCoin should quietly go to Singapore, get a safe deposit box, and stuff it full of gold.  Singapore is more likely to respect your rights than your local NWO puppets and the gold will have low spread because it is treated like a currency all over Asia.  They understand that gold is money.

In reply to by troubadourcapital

HRClinton pascal bets Sat, 12/16/2017 - 12:59 Permalink

Some of us BTC-stackers and HODLers are in it to win it. We're "Going Galt":We're putting FRB fiat into the Parallel Economy and keeping it there.Parallel Economy = CB fiat killer   = Decentralized, discreet, not tracked easily or at all   = Barter + PM + CC1 + AA2     1 Crypto Currency,     2 Appreciating Assets (Antiques, some Art, Diamonds, Gems, prime RE)See? A whole new paradigm toward the CC ecosystem.Got clarity and civic courage? Pass the word.

In reply to by pascal bets