Saturday was a historical day for Bitcoin. The digital currency reached a $33,000 valuation after fluctuating for several weeks. Volatile stock market plunges were ineffective in disturbing the crypto coins rally as it took the bull by it’s horns and stampeded to a valuation that ended threefold what it was when 2020 began. However many investors are saying the virtual numbers aren’t reality and are warning others about exaggerated valuations. Economist are crediting “overcrowded” trades as one of the reasons for vanity figures.
“Based on our (stock market) valuation work, we are anywhere from 20% to 30% overvalued based on a whole bunch of different metrics” according to David Rosenberg. A veteran strategist and Rosenberg Research president.
Even so the “massive bubble” is expected to stay a float as long as the Federal Reserve doesn’t drastically increase interest rates. While many traditional investors remain skeptical of the virtual coin some perceive it as a means to quick gains and a practical heir to the declining dollar. Ethereum which is the second largest crypto currency also broke a record reaching $1,014 on Sunday according to CNBC.
BY: BEWITTY Staff