Bitcoin fell as much as 21% over Sunday and Monday in the worst two-day slide since March, reports Bloomberg. The steep selloff fueled concerns that the cryptocurrency bubble may be about to burst, having quadrupled in the past year.
- Analysts warn that Bitcoin’s parabolic rise is unsustainable in the near term,” and it is “time to take some money off the table.” – Scott Minerd, Guggenheim Investments.
- Bitcoin enthusiasts have defended its rally, saying this time is different from past boom-bust cycles since the asset has matured with institutional investors’ entry.
- The enthusiasts also point that Bitcoin is becoming a legitimate hedge against dollar weakness and inflation risk.
- Some Investors worry that Bitcoin’s rally is untethered from reason and fueled by vast fiscal and monetary stimulus, and is unlikely to ever serve as a viable currency alternative.
- On Monday, U.K’s financial watchdog warned consumers looking to profit from Bitcoin to “be ready to lose everything.”
Bitcoin is currently declining. BTCUSD is down 11.45%