There are still some question marks about whether bitcoin is in a bubble. But the speed of its price growth is already nearly unmatched.
The cryptocurrency has surged 162% in very volatile trading this year amid continued demand. But as the chart below illustrates, bitcoin’s longer-term rally by as much as 1,000% was swifter than homebuilder stocks in the lead up to the housing crash.
Jeffrey Kleintop, the chief global investment strategist at Charles Schwab, said that “the 10-year buildup is important to how embedded the bubble becomes and how much impact the bursting has on the economy and markets.”
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In other words, this is simply unprecedented. But arguably, a bitcoin crash probably won’t have the same ripple effect on the economy as some other assets would.
Billionaire Marc Cuban is among those who have said bitcoin prices are in a bubble. “When everyone is bragging about how easy they are making $=bubble,” he tweeted.
Ethereum, another cryptocurrency, is up by more than 3,000% this year.
Get the latest Bitcoin price here.