Is ‘mother of all bubbles’ about to bust as Bitcoin plummets 21%?

SourceKhaleej Times
SectorFinancial Markets
CountryMiddle east

After a persistent dizzying rally, Bitcoin plummeted as much as 21 per cent over Sunday and Monday in the biggest two-day slide since March amid widespread concern that the “the mother of all cypto bubbles” may be about to burst. The nose-dive of most cryptocurrencies wiped nearly $140 billion off a total market cap of over $1 trillion as traders took profits on the spectacular rally so far this month in light of a stronger dollar and growing political uncertainty. Investors will be keeping a close eye on the possible impeachment of President Donald Trump and a surge in cases of Covid-19 in Asia. On Monday, Bitcoin, which is still up about 25 per cent so far this year, dropped 6.0 per cent to a one-week low of around $35,720 on the Coinbase platform, while Ethereum fell 12 per cent. Smaller coins XRP and Litecoin shed around 18 per cent each. Bitcoin last week hit a record high above $41,000, swept up by a combination of a weaker dollar, economic optimism and a wave of bullish sentiment towards cryptocurrencies, as big-name investors and investment banks touted its potential for further more...