THE BITCOIN boom is good news for investors, but some experts are warning that there could be signs that the bubble is about to burst. Is bitcoin about to crash?
Mr Donovan likened the bitcoin craze to the tulip craze which is widely seen as the first example of an economic bubble.
He tweeted: “Amsterdam 1636. Cash-settled futures markets in tulip bulbs start. Prices soar. Amsterdam February 1637. Tulip bubble bursts.”
He told Express.co.uk: “We don’t think there is a market bubble. There will likely be a correction, as there is every time we see a sharp rise, but viewed through the lens of the last two to three years, bitcoin has risen steadily.
“This latest rally has been in part driven by CME’s decision to launch bitcoin futures later this year, which is anticipated to bring more investors to the asset, and is the latest sign that bitcoin is moving into the mainstream.