Bitcoin drops below $35,000, and Bank of America‘s investment strategist calls BTC “the worst of all bubbles”
Bitcoin shows a crushing drop
The main cryptocurrency fell below $35,000. It peaked on January 8, when BTC reached $41,590 according to Coinmarketcap. After that, the rate of the crypto coin began to decline. As of January 11, the price of bitcoin is $34,660.
The drop happened amid the publication of an article in The Times that the largest British bank HSBC refuses to process cryptocurrency transactions. Also, the financial institution does not allow clients to cash out the funds contained in their cryptocurrency wallets.
“While other leading banks will accept transfers from digital wallets to checking accounts, many of them do not allow customers to use their credit cards to buy or sell bitcoin,” the newspaper notes.
Bank of America calls BTC “worst of all bubbles”
Bank of America chief investment strategist Michael Hartnett has compared the recent rally in the first cryptocurrency to other bubbles. He noted the “increasingly speculative” investment behavior of bitcoin.
The analyst pointed out that BTC has outperformed other assets over the past few decades, and its price has risen by about 1000% since the beginning of 2019. Hartnett compared the dynamics of the BTC exchange rate to past market bubbles. For example, with the rise in gold prices by more than 400% in the late 70s.
The strategist also recalled the bubbles in the Japanese stock market in the late 80s and in the dot-com market in the late 90s. The expert noted that all these cases were characterized by explosive growth before the collapse.
Crypto exchange Livecoin to pay a bounty for information about the hack
Crypto platform Livecoin, which was attacked at the end of December last year, moved to the temporary domain Livecoin.news. The new site is still the only channel of communication with users. Livecoin representatives asked customers “not to use the old domain for any purpose until further notice.”
“We’re highly restricted in publishing news after the investigation started out. The only we can say at the moment, that a carefully planned attack to our service was carried out from different sides. We temporarily lost control of our servers and much more, ”the message says.
Livecoin did not name the exact time when the crypto exchange will resume its work.
The platform is ready to pay a bounty for information about hacking.
“If you have any useful information, which can help to return transferred funds and find breach or attacker, please feel free to contact us via e-mail: email@example.com. Bounty size will be determined in each case individually and only for useful information which is new for us. Please do not send letters regarding any other questions, like payments, trading, transactions etc, it won’t be answered. All these questions will be answered in news later, ” the company added.