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‘Ugly’ Bitcoin Bubble Warning As Ethereum, Solana, Cardano And XRP Suddenly Rebound

‘Ugly’ Bitcoin Bubble Warning As Ethereum, Solana, Cardano And XRP Suddenly Rebound
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Bitcoin and cryptocurrency prices have rebounded after a surprise sell-off last weekend that wiped out nearly $300 billion from the common cryptocurrency market — with some betting that the market is heading much higher.

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Bitcoin price is now trading nearly 30% off an all-time high of around $69,000 per bitcoin set last month, and has settled at just over $50,000 after crashing below $42,000. Smaller cryptocurrencies such as Ethereum, BNB, solana, cardano and Ripple’s Ripple also bounced back after the crash.

Now, a financial advisor has made a stark prediction of bitcoin and cryptocurrency prices, warning that the cryptocurrency “is one of the biggest bubbles ever” and when it bursts “it’s going to be ugly.”

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“This bitcoin — this entire cryptocurrency — is one of the biggest bubbles ever,” said Ryan Payne, President of Payne Capital Management. Yahoo Finance. “I think eventually the bubble will burst. It’s going to be ugly.”

The bitcoin and cryptocurrency market has skyrocketed over the past year, rising amid an even bigger rally in stock and asset prices. Bitcoin has gone from a total value of just $400 billion this time 12 months ago to around $1 trillion today.

“[The crypto market] Somewhere over $2 trillion. When the dotcom bubble burst, the value of the dotcom stock was half a billion dollars. The inflation rate is $1 trillion in today’s dollars. “Most of these stocks have become worthless,” Payne said.

Several smaller cryptocurrencies, such as Ethereum and their biggest rivals BNB, Solana and Binance’s Cardano, have made percentage gains larger than Bitcoin, rising at a dizzying pace as investors piled into the market — thanks in part to massive financial stimulus programs launched by the Reserve. The US Federal Reserve and other central banks to offset the economic damage caused by the Covid-19 lockdowns.

“There’s a lot of money that could go into this market,” Payne said. “It just became a bigger and bigger casino.”

“At the end of the day, we’re not using it for that much more commercial use. It’s just more people speculating and I think it’s very similar to what happened when the tech bubble burst or when you go back to the housing bubble… where everyone is involved.”

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Others, notably investor Michael Barry, are best known for his 2007 housing market bet and portrayed by Christian Bale in the 2015 film The Big ShortThey also warn that the bitcoin and cryptocurrency market is headed for a crash. In October, Perry asked his Twitter followers, “How do you short cryptocurrency?”

Last week, the right hand of Warren Buffett, Berkshire Hathaway

Vice Chairman Charlie Munger warned that markets today are more brutal than they were during the dot-com bubble.

“The internet boom was crazier in terms of valuations than we have now,” Munger said at the Sohn Hearts & Minds Investment Conference in Sydney.

“But in general, I consider this era crazier than the internet age. I can’t bear to participate in these crazy booms. Everyone wants to accumulate, and I have a different attitude. I want to make my money selling people things that are good for them, not things that harm them.”

Munger also said he wished cryptocurrency was “never invented,” echoing Buffett’s past criticism of bitcoin and cryptocurrency, and praising China for banning bitcoin outright.


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