Bitcoin and cryptocurrency costs recovered after a sudden sell-off last weekend that removed around $300 billion from the combined cryptocurrency market, and in some cases the market is rising much higher.
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Bitcoin’s value is now trading nearly 30% from its all-time high of around $69,000, consistent with bitcoin set last month, settling at just over $50,000 after falling to less than $42,000. Smaller cryptocurrencies Ethereum, Binance’s BNB, solana, cardano and Ripple’s XRP also recovered after the accident.
Now, a monetary advisor has made a harsh prediction about the value of bitcoins and cryptocurrencies, warning that cryptocurrency “is one of the biggest bubbles of all time” and when it bursts “it’s going to be ugly. “
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“This total history of bitcoins, this total cryptocurrency, is one of the biggest bubbles of all time,” Ryan Payne, president of Payne Capital Management, told Yahoo Finance. “I think this bubble will burst. It’s going to be ugly. “
The bitcoin and cryptocurrency market has soared over the past year, soaring amid a rise in stock and asset prices. Bitcoin has gone from a combined price of just $400 billion this time 12 months ago to about $1 trillion today.
“[The cryptocurrency market] is approaching $2 trillion. When the dot-com bubble burst, those inventory market inventories were worth a billion dollars. After adjusting for inflation, this equates to $1 trillion in today’s dollars. Most of those inventories have been worthless. ” Payne said.
Many smaller cryptocurrencies, such as ethereum and its biggest rivals, BNB, solana and Binance’s cardano, have made even bigger percentage gains than bitcoin, at breakneck speed as investors rush into the market, thanks in component to the large monetary stimulus systems introduced. through the US Federal Reserveand other central banks to compensate for the economic damage caused by Covid-19 lockdowns.
“There is too much cash that can enter this market. It’s a bigger and bigger casino,” Payne said.
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Others, investor Michael Burry, known for his bet opposed to the real estate market place in 2007 and played through Christian Bale in the 2015 film The Big Short, also warned that the place of the bitcoin and cryptocurrency market is headed for a collapse. his fans on Twitter “how to sell a cryptocurrency?”
“The dot-com boom is crazier in terms of valuations than what we have now,” Munger told Sohn Hearts.
“But overall, I was even crazier than the dot-com era. I just can’t bear to participate in those crazy booms. Everyone should be worried and I have a different attitude. I need to make money by promoting other people’s things that are smart to them, not things that are bad for them. “
Munger also said he was looking for cryptocurrencies to “never have been invented,” echoing Buffett’s past criticism of bitcoin and crypto and praising China for banning bitcoin altogether.