Bitcoin Price Bubble is Popping, says Bank of America
April 11, 2018 11:26 am
Bank of America says Bitcoin Price Bubble is Popping
In a note issued Sunday, the team led by Michael Hartnett, the chief investment strategist went so far to categorize the present market, which has seen 60% amendments so far in 2017, as a bubble is now bursting, as per Bloomberg report.
According to Coindelite’s Price chart, bitcoin topped at $19,783 on Dec. 17, and currently, it trades at $6,864.
The current Bitcoin bubble isn’t history’s or event bitcoin’s biggest bubble. The cost of Bitcoin rose up 120 fold in 2010 and 2011, to around $11, before dropping. Its growth in 2013 and 2014 was also much sheerer than the recent bull market. That being stated, the correlation between 2017 bubble and past one was unfair, the note said. The 2017-18 bubble had more capital spent in the market than both 2010-2011 or 2013-2014.
The same element confounds comparisons among bitcoin and the stock market. For instance, in August 1929, the New York Stock Exchange’s listings were worth beyond $1 trillion, arranged for inflation.
The bank issued a chart analyzing bitcoin with great financial manias: the Mississippi Company and South Sea Company in the 18th century, gold, the U.S. stock market in 1929 and the Dutch tulip bubble in 1637.
The researcher stated, the chart shows that the bitcoin bubble has the most significant asset price appreciation by a notable margin. At its zenith bitcoin’s cost was nearly 60 times what it was three years ago. Dutch tulip prices only increase by a factor of around 40.