On Wednesday night and Thursday morning, one of the Bitcoin exchanges was hacked for $70 million worth of Bitcoin. It scared Bitcoin investors that it only traded as high as $19,000 in some markets. This market is pressuring the metals as they start to break down here. All new money seems to be flowing into the crypto space.
Whether you believe in Bitcoin or not, whether you are invested or not, this market is in a bubble formation. The parabolic move in the charts can only lead to a sell-off; still, a bubble doesn’t make it a bad investment. The fear of missing out has driven the crypto currency to the moon; buyers have forgotten all the essentials to investing and are chasing Bitcoin to the moon.
All bubbles eventually pop. The most recent bubbles were silver at $50, gold at $1,900 and too many more to name. History tells us that when everyone knows a certain market can only go up, the pattern becomes parabolic, price and time become irrelevant, then that market is in a bubble that will pop.