Wow, don’t look now, but Bitcoin (BTCUSD) is coming on strong! …+$51.19 to $419.43, the alternative digital currency has gone parabolic since bottoming at $213 on August 23. Interestingly, for a moment, it looked as though gold was on the cusp of a big pop, but that has stalled. I have to wonder as the “currency” matures if it will live up to the hype. It is still too early and I am not sold on the notion, as there is an unbreakable program that will ultimately limit the number of coins, thereby spiking the value of those already in circulation.
That being said, a greater acceptance of bitcoin underscores the growing rejection of fiat money and the governments that print them up at will.
Transactions:
- 31,433: Nov 5, 2012
- 192,366: Nov 3, 2015
However, there is a future for digital currency, as the masses understand how fragile the global monetary system has become. It’s only going to get worse from here; short cuts and political aversion to a hard landing means pumping up the volume. Where the bubble bursts, no one knows and no one cares- except those folks that made 192,366 financial transactions with bitcoin on Monday.
I am watching this closely because at some point, this will be a harbinger of a loss of faith in paper currency. And particularly the U.S. dollar and a loss of faith in a government that spies and lies.
NASDAQ
While the bitcoin rally has been impressive, NASDAQ touched a 15-year high yesterday. There is a ton of former high-flyers that could come on strong during a year-end rally. Overall, it was clear stocks ran out of steam with an hour left in the session. Let’s not forget, we are a couple of days away until the jobs report. Usually this week sees a couple of triple-digit sessions for the Dow on both the up and down sides.
The intensity will ratchet up a notch or two over the next 72 hours of trading, and we still won’t know how to react when the numbers are released on Friday.