Bubble fears as Bitcoin moves above $10,000 level
Bitcoin pushed past the $10,000 mark for the first time yesterday, further stoking fears of a price bubble around the cryptocurrency.
The price of Bitcoin was hovering around $10,035 on cryptocurrency exchange CEX in morning trading, having reached $5,000 just a month earlier. It has raised concerns that investors are over-estimating Bitcoin’s value.
Neil Wilson, a senior market analyst at ETX Capital, said institutional investors “won’t go near it”.
“Prices are in bubble for sure – people are buying for speculative (reasons) only and that is when you have to worry it’s a proper unsustainable bubble.
“Trouble is guessing whether we are in the boom phase or have moved into the euphoria phase,” he added.
Bitcoin has faced notable criticism in recent months, with JP Morgan boss Jamie Dimon taking aim at the cryptocurrency, calling it “a fraud” and saying he would fire employees found to be trading the digital currency for being “stupid”.