Bitcoin Bubble Is Bigger Than That Of Nasdaq In Late 1990s
(Kitco News) - Bitcoin’s fast rise to fame could be coming to an end soon, according to Birinyi Associates, which says that the cryptocurrency’s bubble could be bigger than that of Nasdaq in the late 1990s.
The popular digital currency has been surging without any significant pullbacks this year, until now.
Earlier this week, the cryptocurrency jumped above $11,000 for the very first time, but then quickly dropped below $10,000, signifying that it finally entered into an overbought territory.
Bitcoin was last seen trading at $9,767.50, down 1.41% on the day, according to Kitco’s aggregated charts.
Birinyi Associates compared the rising price of bitcoin with ten well-known bubbles, including the Mississippi Company (1718-1720), Qualcomm (1998-1999), silver (1978-1980), Beanie Babies (1996-2005), Nasdaq (1998-2000), and the Dow (1927-1929).
The result was that bitcoin was among the top three bubbles out of those examined.
Founder of Birinyi Associates Lazlo Birinyi told CNBC that even though he will trade bitcoin, he would not invest in it, even on a dare. “I would not want to go home with a lot of bitcoin,” he added.
Bitcoin recorded unprecedented growth this year, with tokens trading below $1,000 in the beginning of 2017, which triggered numerous bubble warnings.