Bitcoin trading is totally bonkers and it doesn’t look like it’s going to calm down anytime soon. It’s morphed from an underground tech-geek trade to the biggest market mania we’ve seen in decades.
The original article by Greg Guenthner has been edited for length and clarity to provide a fast & easy read. For all the latest – and best – financial articles sign up (in the top right corner) to receive munKNEE.com’s free bi-weekly Market Intelligence Report newsletter (see sample here) or visit our Facebook page.
…Bitcoin futures blasted higher right out of the gate last night. They triggered not one but two trading halts as it marched to overnight gains of more than 25% on the CBOE. Reports of the CBOE site going down started flooding in during the first hour of trading. Coinbase, a popular bitcoin trading site, also crumbled under the pressure last night.
Bitcoin news is pushing stock market stories below the fold. Despite the market’s incredible performance this year, equities are starting to take a back seat to cryptocurrencies. Then there’s gold.
Bitcoin is stealing gold’s thunder… Debates over stores of value in the event of societal collapse have shifted from gold to bitcoin. Bitcoin searches are more popular on Google than gold. No one seems to care about the Midas metal anymore…
Gold Mining Stocks
While new, smaller cryptocurrencies and “initial coin offerings” continue to gain attention, the market’s more speculative gold mining stocks are taking a beating. The VanEck Vectors Gold Miner ETF (NYSE:GDX) can’t keep its head above water. GDX is down more than 15% over the past three months.
Bottom line: Bitcoin is killing gold right now. We have no idea how long crypto-mania will last but, if the excitement surrounding bitcoin continues through the holiday season, we suspect things will get worse for gold before they get better.