Bitcoin’s price action has again become the talk of the city as the largest cryptocurrency in the world experienced massive fluctuations in its value. Over the previous weekend, the value of Bitcoin plummeted below the $8700 mark after the currency had been pegged to break the $10,000 resistance soon.
Last Sunday, Bitcoin’s price plummeted dramatically in a very short amount of time, resulting in people like Dr. Nouriel Roubini coming out of the woodworks. The man, also known as ‘Dr.’ Doom ‘was able to find out with his remarks on the institutions that Bitcoin was running a sham.
In a recent tweet, Roubini criticized Bitcoin by suggesting that the cryptocurrency had no basis or base on which to function. He stated that the virtual asset environment was just a large ecosystem dominated by big investors and companies for their own whims and fancies. According to him, cryptocurrencies such as Bitcoin embodied the word ‘sham trading’ and would never be used for public consumption. His tweet read:
“Bitcoin crashes by 15% in 7 minutes on NO news: a rigged, totally manipulated, whales-controlled market where most transactions (90%) volumes are false as exchanges pretend to have liquidity they don’t have. Massive pump & dump, spoofing, front running, wash trading! Total Scam!”
This is not the first time that”Dr Doom” Nouriel Roubini has criticized Bitcoin, as he almost always becomes a frontline critic during a bear ride. His latest tweet was not received with much support, as some of his followers even threatened to unfollow him. Some Bitcoin supporters also asked Nouriel Roubini to watch the market because they expected the price would reach $50,000. If one looked at the market, it was clearly evident that Bitcoin was following a bear run reflected by other sectors such as the S&P 500.
Around the time of the release, Bitcoin traded $8676 with a total market cap of $159.4 billion. Following the current crash, the hourly, regular, and weekly charts all blinked red. Bitcoin’s 24-hour market cap slipped below the $50 billion mark to $57.5 billion. As normal Bitcoin crash also caused price drops in altcoins with Ethereum falling below the $200 mark while XRP ducked below 20 cents.
Nouriel Roubini was endorsed by fellow Bitcoin hater and gold evangelist Peter Schiff who said that the halving speculation would soon die. According to Schiff, the true value of Bitcoin was null and zero, with fundamentals that could be completely ignored.
Roubini was also in the news recently when he reported that the current economy was heading for an L-shaped recovery, contrary to the popularly known V-shaped recovery. His hypothesis was based on factors such as debt, deficits, deglobalization, currency devaluation, and environmental disruption. The economist added that if the US Treasury were to inject billions of dollars into the economy, it will only worsen the financial crisis.