‘Biggest Bubble Ever’—Serious Crypto Warning Issued As The Fed Boosts The Price Of Bitcoin And Ethereum

Bitcoin and cryptocurrency prices soared after a closely watched Federal Reserve announcement that it would accelerate the end of pandemic stimulus measures.

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The price of Bitcoin soared around $50,000 per bitcoin, with the price of Ethereum also rising, after Federal Reserve Chairman Jerome Powell said the US central bank would cut monthly bond purchases at twice the rate it set just six weeks ago, and saw three rate hikes. in 2022 in an effort to curb rising inflation.

Ahead of the Fed’s announcement, influencer investor Rich Bernstein warned that bitcoin and cryptocurrency are the biggest financial bubble ever — even as crypto investors predict that the price of bitcoin, ethereum and other cryptocurrencies will continue to rise.

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The CEO of Richard Bernstein Advisors has stated that cryptocurrency is the largest financial bubble ever in history. CNBC. “This is just a monster.”

The price of Bitcoin has risen at a rapid pace over the past year, with some smaller cryptocurrencies – including Ethereum and many of its competitors – posting bigger gains as traders and investors piled into the booming market. The price of Bitcoin has added 600% over the past two years while Ethereum has added about 2,500% – helping the cryptocurrency market grow from $200 billion in value 24 months ago to $3 trillion in November.

Bernstein also warned of what he called “technology, innovation, and disruption” investments that he believed could collapse as badly as when the dotcom bubble burst in the early 2000s.

“On the one hand, we have everything I would call bubble assets: technology, disruptive innovation, and cryptocurrencies,” Bernstein said. “On the other side of that swing, you have literally everything else in the world. I think if you’re looking forward to 2022 to 2023, you want to be in everything else on the global side of this saw.”

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More from ForbesThe US could ‘adopt crypto in 2022’ – massive Bitcoin and Ethereum price predictions revealed

Cryptocurrencies, asset prices and stock markets have soared over the past 18 months as central banks around the world have flooded markets with cash, cheap debt to stave off economic damage from the Covid-19 pandemic and shutdowns put in place to try to contain it. Some investors have warned that as central banks scale back their unprecedented support, higher prices will collapse.

However, the prices of Bitcoin, Ethereum and other cryptocurrencies rose yesterday after the Federal Reserve revealed a tougher-than-expected stance, rising along with tech stocks.

“While these new policy changes are usually bearish for cryptocurrencies as they are a risky asset class that thrives in a low interest rate environment, digital assets reacted positively to the meeting as the news appears to have already priced in and this greater clarity is welcomed. Investors,” Marcos Sotiero, an analyst at UK digital asset broker GlobalBlock, wrote in a note following the Fed’s decision, adding that he expects continued institutional bitcoin buying to signal that the price of bitcoin will reach all-time highs in 2022.