I personally am very pro-Bitcoin. Its been a great fun to watch. It’s interesting. It’s new. But Bitcoin is no game and we’re getting some classic bubble indicators. One is that everyone is paying attention to Bitcoin all of a sudden. That doesn’t bode well. In fact this morning I saw a piece suggesting that Bitcoin might make a great Christmas gift. It asked, “Who doesn’t like getting something that will increase in value?”
Indeed, Bitcoin can go up in value. But it can also go down. It’s been going up at breakneck speed for a year now. That’s a long time. Caution is the word.
The world’s largest cryptocurrency marked its latest milestone just a week after it passed $8,000. It topped $9,000 over the weekend. It’s currently trading at $10,031.10.
But for its soaring highs, volatile Bitcoin has had some lows this year, including three separate drops of more than 25%.
Still investors are pouring into the Bitcoin space to get a piece in the new digital gold rush.
Michael Novogratz, the former manger of the Fortress hedge fund, told CNBC Monday that Bitcoin could soar to $40,000 by the end of 2018. Bitcoin Investment Trust (GBTC), an exchange traded note backed by Bitcoin, popped 15% Tuesday morning after soaring 24% on Monday.