In the Asian session on Tuesday, the price of Bitcoin fell sharply again, dropping more than 10% at one point and losing $49,000 per coin. It is now trading around $50,330. Bitcoin also tumbled on Monday, dropping 16 percent at one point to $47,400 per coin.
according to a report on February 23, the latest yahoo finance a “Dr. Doom” said the famous economist Nouriel Roubini, February 22 warned Nouriel Roubini, the currency prices are “large-scale manipulation”, the “fear of missed opportunities” retail investors will be in the recent round of currency rise during investment COINS, but will eventually “pocket”.
In an interview, Roubini noted that, just as with Bitcoin during its 2017 boom, thousands of retail investors are experiencing a ‘fear of missing out’ (fear of missing out) into the asset class right now. They intended to buy at the peak, when the price of Bitcoin hit $20,000 in December 2017 before collapsing to $3,000 by the end of the following year.
“The same thing is happening now,” he says. “People are coming in because of ‘fear of missing out’, fuelling bubbles, market manipulation and eventually they will lose all their money.”
The economics professor at NYU Stern argues that bitcoin’s surge has been driven by “massive manipulation” and has nothing to do with hedging against inflation.
Mr. Roubini noted that gold hasn’t risen much, and Treasury Inflation-Protected Securities haven’t risen much. Why is only Bitcoin a hedge against inflation and fiat currency depreciation? There must be another reason for Bitcoin’s surge, namely “massive manipulation.”
Roubini believes cryptocurrencies such as bitcoin should have no place in the portfolios of retail or institutional investors, pointing to “huge volatility” as a cause for concern.
“Whether retail or institutional, you have to ask yourself whether you should be investing in something that is so risky that it is neither a currency nor even an asset,” he says.
The reality, Roubini added, is that no one knows what bitcoin is worth. It has no value because it has no income, it has no use, it has no utility. So this is speculation in a bubble of self-fulfilling prophecy.
The past few years have not been unusual for the price of bitcoin to fluctuate wildly. Bitcoin briefly climbed to nearly $20,000 in 2017 before falling 80% the following year
Tesla CEO Elon Musk last week championed the idea of bitcoin helping its price soar 20 percent. On February 21, the price of a bitcoin briefly surpassed $58,000, the first time in history that one bitcoin has cost more than one kilogram of gold.
Over the weekend, however, Musk suggested in a tweet that Bitcoin was too expensive. The announcement hit the price of bitcoin on Monday.
According to data from BitcoinHome, a total of 360,000 people have exploded their positions in the last 24 hours, and about $3.720 billion (about 240.55 billion yuan) of funds have disappeared in one day.
On Saturday, Musk said the price of Bitcoin and rival Ethereum seemed too high.
U.S. Treasury Secretary Janet Yellen warned on Monday that Bitcoin is a “highly speculative asset” and said she was concerned investors would lose money.
“This is a highly speculative asset, and I think people should be aware that it can be very volatile, and I do worry about potential losses that investors could suffer,” Yellen said.
Yellen noted that digital currencies could lead to faster and lower-cost payments, but many issues still need to be studied.