Bitcoin Plunges; Bank of America Says Crypto Bubble Is Popping
Investing.com – Prices of Bitcoin and other major cryptocurrencies fell on Tuesday, while a report by Bank of America gathered some attention as it called crypto the greatest bubble in history.
Bitcoin was trading at $6,770.0 by 10:30PM ET (02:30GMT) on the Bitfinex exchange, down 5.2% over the previous 24 hours.
Ethereum, the world’s second largest cryptocurrency by market cap, was down 3.1% at $398.48 on the Bitfinex exchange.
Ripple’s XRP token fell 4.4% to $0.48432 on the Poloniex exchange.
Meanwhile, Litecoin lost 6.0% to $114.53
A report by Bank of America (NYSE:BAC) was in focus on Tuesday, as the second biggest US bank called Bitcoin “the greatest bubble in history”, and that it is popping.
The virtual currency is following the trend of the other massive asset-price bubbles in history, analysts lead by Chief Investment Strategist Michael Hartnett wrote in a note. Bitcoin has fallen more than 65% since peaking in December at $19,511.
In February, Bank of America warned in its annual filing with the SEC that it could face “substantial” costs as it deals with digital coins, and included warnings about the technology among the “risk factors” for investors for the first time.
“The widespread adoption of new technologies, including internet services, cryptocurrencies and payment systems, could require substantial expenditures to modify or adapt our existing products and services,” the bank said.
The document also said cryptocurrencies could make it more difficult for the bank to comply with regulations by impairing its ability to track the movement of customer funds
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