- Bitcoin (BTCUSD on xStation5) could be one of the largest bubble ever according to Birinyi Associates
- The price of Bitcoin settles down while bulls have been able to stay above a crucial support
- PricewaterhouseCoopers (PwC) announces that it starts accepting payments in Bitcoin
It’s been the unbelievable week on the major cryptocurrencies as we’ve experienced incredibly chaotic moves up and down which in turn have led to new highs on Bitcoin, Litecoin (LTCUSD), Ethereum (ETHUSD) or Dash (DSHUSD). While Bitcoin continues to climbing there are getting more watchers claiming that it could be the biggest bubble ever. According to Birinyi Associates which studied Bitcoin versus 10 large financial bubbles the most famous digital currency showed particular bubble-like qualities this week, surging beyond $11,000 before trading back at around $9,600 yesterday afternoon. Notice that the price began November nearby $6,500 meaning that Bitcoin almost doubled its value just in a month.
The research suggests that Bitcoin is the third largest bubble behind an 18th-century French financing scheme around the development of the Mississippi Valley known as the Mississippi bubble, and the one-day 31 percent surge in Qualcomm in December 1999. While Laszlo Birinyi, an investor and the founder of Birinyi Associates, suggests that Bitcoin could be the largest bubble in history, he rules out that the US stock market resembles the similar story as most of stocks’ gains are consistent with the companies’ earnings.
After surging to $11,000 the Bitcoin price tumbled to $9,200 however buyers were able to maintain the price above a key support. That said, one may conclude that until the price hovers above this level, a possible resumption of gains is on the cards. On the flip side, a breakout of this area could hasten declines pushing the price as low as $8,000. Source: xStation5
Even as the price of Bitcoin seems to be quite calm we got another promising news increasing Bitcoin’s acceptance which could shore up the price in the future. Namely PwC, the consultancy and accounting firm belonging to a so-called "Big Four", announced on Thursday that it accepted its first payment in Bitcoin. According to Raymund Chao, chairman of PwC Asian-Pacific, this decision helps illustrate how the company is embracing new technology and incorporating innovative business models across its full range of services.
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