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Bitcoin Surges Through $11,000 With $12,000 Up Next

Bitcoin Surges Through $11,000 With $12,000 Up Next
Written by
Alex Carlson
Published on
November 29, 2017
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In less than 24 hours after hitting $10k, Bitcoin has surged through $11,000 and as of this writing is priced at $11,433.Chart courtesy of coinmarketcap.comAs prices have surged, new developments have given Bitcoin increased credibility to sustain the remove. According to CNBC, William Dudley, president and CEO of the Federal Reserve Bank of New York, said at a conference Wednesday that the Fed is exploring the idea of its own digital currency, according to reports from Dow Jones.At a CoinDesk conference in New York, TechCrunch founder Michael Arrington said he's raising $100 million hedge fund that will buy and hold crypto assets while making investments in token sales. The new fund will be called Arrington XRP Capital and will require all limited partners to make investments in XRP, the cryptocurrency that powers Ripple's RippleNet software. XRP will be the currency for all distributions and fees.The original report was that 100k new Coinbase accounts were activated over the Thanksgiving weekend. However, that figure was upped to 300k. 300k new users bought their first Bitcoin. While the mainstream press tried to laugh at reports of grandparents buying at $9700, the Bitcoin community is laughing at the media now. On CNBC this morning, Jim Cramer almost came to tears talking about Bitcoin and the parabolic move it's made. For a man that gives investment advice daily, he has missed the greatest bull run of all-time.For all the gold bugs that also missed the Bitcoin move, gold on the Comex is trading at $1290 an ounce. In a few hours or days at the most, we will see Bitcoin trading 10x gold. Considering that the global gold market is estimated at $8 trillion, Bitcoin's market cap of $191 billion remains quite small.With the Dow Jones Industrial Average at 23,000, one has to consider how long it will take for Bitcoin to surpass the Dow. At the rate Bitcoin is going parabolic, what was once considered impossible is now possible.Next month, Bitcoin futures will start trading and that will allow pension funds and endowments an opportunity to own Bitcoin. Until now, it is believed that NO pension funds or endowments own Bitcoin due to ERISA laws. The fact remains that trillions of dollars are sitting on the sidelines and have ZERO exposure to Bitcoin.With all the "smart" money calling Bitcoin a bubble, the bullish arguments far outweigh the bearish arguments. However, there is one bear argument that does concern me - the IRS and the US Government. The US government regulates all cash transactions of $10,000 or more. It's only a matter of time before the IRS demands US citizens to disclose via oath regarding any/all cryptocurrency holdings. There's also the risk the US Treasury comes out against Bitcoin.This would result in an extreme selloff. If this does happen, all I can say is buy with both hands and grab all you can.China has tried to curtail Bitcoin's rise by closing exchanges and here we are at new highs. The Bitcoin freight train is steaming ahead and is not going away. Governments can try to slow it down, but it can't be stopped. As more become Bitcoin owners, the ecosystem expands and they become true believers. Furthermore, a stock market crash and global recession like we saw in 2008 is inevitable and that will further drive more into Bitcoin and cryptocurrencies. The crypto revolution will continue to flourish regardless.Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.Image courtesy of Jason Benjamin via Flickr

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