Bitcoin Hits $14,000, Is There An End In Sight?

December 7, 2017

At the time of writing, Bitcoin is just shy of $14,000US (when I started writing this article it was around $13,000). Bitcoin’s market cap is now greater than Citigroup, a company that employs over 200,000 people all around the world.

This is probably the most interesting series I’ve seen on Bitcoin so far; on the left you have price and on the right you have the number of days it took to break that level.

(courtesy of ZeroHedge).

That’s parabolic price action if I’ve ever seen it.

Will it ever stop going up?

Yes. Of course it will. But picking the spot where it all turns around is almost impossible. The introduction of Bitcoin Futures markets and the “legitimising” of Bitcoin has been the narrative offered for why BTC continues it’s hyperbolic move. There’s no doubt that people are rushing into BTC, and given the extremely limited supply, there’s nowhere for the price to go but up. The crypto market looks a lot like the Chinese stock bubble of 2016, where Chinese retail investors pumped up stocks to record levels. What we had there was new money chasing profits blindly, and it seems like crypto is falling into that boat right now.

This is all about to change.

What futures give traders and portfolio managers, and we are talking real heavy hitting traders not millennial’s on their iPhones, is the ability to short unlimited amounts of Bitcoin. This is very important. Bitcoin futures will be settled in cash, and there’s no need for anyone trading them to ever own Bitcoin itself. Like the Gold market, billions of dollars worth of “Bitcoin” will be able to be traded and shorted. If the argument for Bitcoin’s move is scarcity, the creation of futures ads infinite BTC to the market.

This is new ground, and it will be very interesting to watch the action on Sunday.