There have been many positive developments during the last five months and a few of the obstacles that were in Bitcoin’s way have been knocked down. An argument can be made that the good news is still not fully reflected in the current price.
That’s what Ronnie Moas, founder of Standpoint Research, said in a note to clients last Monday.
This is probably as good a time as any to remind you what we said on Twitter about Ronnie’s call. To wit:
lol. “target”
BITCOIN 2018 PRICE TARGET BOOSTED TO $14,000 AT STANDPOINT
— Walter White (@heisenbergrpt) November 20, 2017
coming later today:
“Standpoint raises Bitcoin target after price blows through previous target hours after it was issued”
— Walter White (@heisenbergrpt) November 20, 2017
See that’s the thing about Bitcoin and speculative manias in general. Because the buying is based on the greater fool theory, it can theoretically go on forever. It only stops when everyone independently comes to the conclusion that no one will be willing to pay more than wherever the thing in question is trading currently. That moment can come of its own accord, or it can be triggered by some exogenous event that causes participants to question whether other participants are getting nervous.
Right now, everyone assumes that everyone else is going to be willing to pay up for Bitcoin. Some of this is due to the apparently imminent launch of Bitcoin futures on the CME, a development Thomas Peterffy (known as “the father of HFT”) has warned could collapse the entire U.S. economy if cryptocurrencies are not effectively quarantined and cleared separate from everything else.
Risks aside, some folks are convinced that once CME and CBOE get involved, it’s off to the proverbial races as institutional interest will spike and more products will become available.
Ok, so that’s the backdrop for the latest leg higher in Bitcoin which, just a day after blowing past $8,700, very nearly broke through an incredible $9,200 overnight:
