The price of Bitcoin, the bizarre digital currency, has been skyrocketing. And everyone’s calling it a bubble.
But it’s not like most other bubbles.
Here’s Art Cashin:
Trading Tulips In Real Time – It is rare that we get to see a bubble-like phenomenon trade tick for tick in real time. Usually it’s kind of regional aggregate pricing like real estate reports. But, all that may be changing – before our very eyes – quite literally. The bubble du jour may be something called a “bitcoin”.
Business Insider’s Joe Weisenthal made this same point earlier today.
“You can go here and watch Bitcoin trade tick-by-tick, which is not something you could ever do with these other unconventional micro-bubbles.”
Everyone’s trying to figure out what’s going on with Bitcoin.
Without explicitly arguing for causation, Cashin points to a correlation.
The bidding for Bitcoins has turned a bit more aggressive since the Cyprus “bailin” and the seizure of a portion of bank deposits. The Bitcoin recently traded at an amazing $100 (it had been $50 just two weeks ago).
We have yet to see Bitcoin make a major down move.
“Last night trading turned a bit whacky and the Bitcoin spiked above 145 before plunging in a few trades back to $126,” wrote Cashin. “Just what the world needs – a “safe” currency.”