Bitcoin Watch – Allianz Global Investors: Bitcoin bubble “just about to burst”

Allianz Global Investors head of global economics and strategy Stefan Hofrichter, confirmed yesterday the organisation is worried the Bitcoin bubble is about to burst. According to Mr Hofrichter, “It appears to us that bitcoin mania is a textbook-like bubble – and one that is probably just about to burst”. Despite this, the cryptocurrency “ticks all of the boxes that we consider to be essential criteria of any asset bubble,” including a fivefold surge in trading volumes over the last five years, lack of financial regulation and the launch of related financial instruments such as bitcoin futures. The comments come as the cryptocurrency took yet another dive this week, currently trading at just over USD8,140. This equates to another 10% in 24 hours.

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