The Bitcoin fever is starting to break as worries about a market bubble discourages investors from buying in.
Prices for the largest cryptocurrency dipped as much as 8.4 per cent on Wednesday and traded below US$34,000. Ever since the market shot through all-time highs in early January, Bitcoin has been beset by volatility and skepticism that the run-up has been excessive.
Analysts have pointed to US$40,000 as the key level that Bitcoin needs to surpass in order to draw fresh money from investors riding cryptocurrency momentum. They argue that recent gains could prove fleeting if the rally stalls and traders looking for quick returns shift their money elsewhere. Read more…..
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Bitcoin is an asset that is fueled almost entirely by “false hope” and should demand falter, the price is just going to “collapse”, said Peter Schiff, chief market strategist at Euro Pacific Asset Management.