- Bitcoin dropped 7% from its latest record high of $73,798 as investors debate whether cryptocurrencies are in a bubble.
- Bank of America said cryptocurrencies are the most crowded trade currently and show signs of a bubble, making them risky.
- The retreat coincided with global stocks slipping as investors assessed central banks’ response to inflation, sparking volatility in risk assets like crypto.
Bitcoin Price Drops from All-Time Peak
The largest digital asset dropped as much as 7.2% on Friday before paring some of the slide to change hands at $67,725 as of 7:57 a.m. in New York. The token set a fresh all-time peak of almost $73,798 a day earlier.
‘Bubble’ Concerns Grow
Bank of America said cryptocurrencies are the most crowded trade currently and are at risk of pullback. The bank added that the asset class shows signs of a bubble.
Global Markets Wobble
The retreat in Bitcoin comes as global equities slipped Friday and investors assessed central banks’ response to rising consumer prices. The volatility hit risk assets with stocks sliding and cryptocurrencies tumbling.
Conclusion
The debate around whether cryptocurrencies are in a bubble continues as Bitcoin pulled back from its latest record high. Concerns around speculative excess grew louder amid the asset’s bull run.
