Tags: nouriel roubini | bitcoin | crash | hold | dear | life

Nouriel Roubini: Bitcoin Will Crash as Faithful Hold on For Dear Life

Nouriel Roubini: Bitcoin Will Crash as Faithful Hold on For Dear Life
(Jan Lievens/Dreamstime)

By    |   Wednesday, 07 February 2018 01:50 PM

Economic guru Nouriel Roubini isn’t a big fan of the current financial craze of bitcoin and other cryptocurrencies.

The chairman of Roubini Macro Associates predicts the price of bitcoin is going to crash to nothing, literally.

He called bitcoin the "biggest bubble in human history" last week.

“Bitcoin crashing now to $6,100. And the US Hearing on cryptoscams is only a day away. So a $5K handle looks highly likely unless the crypto-manipulation gangs starts pumping and dumping or wash trading again. So HODL nuts: be ready for a 75% loss from recent peaks,” he recently tweeted when bitcoin’s volatile price took a dive.

CNBC explained that HODL stands for "hold on for dear life." It originated in an online forum when someone spelled the word "hold" wrong. “It has now become a meme and is often used in times of extreme volatility in the cryptocurrency market for people holding rather than selling,” CNBC explained.

Roubini, who is also known as "Dr. Doom," claimed some people will use a market manipulation tactic known as “wash trading” to prop up the bitcoin price, CNBC explained.

Wash trading in the crypto world involves someone buying and selling their own order to manipulate markets. Some have feared that wash trading takes place on bitcoin exchanges.

Meanwhile, bitcoin marched toward its second day of gains as traders showed relief over comments Tuesday by U.S. securities regulators, who called for greater oversight of cryptocurrencies without proposing industry-killing measures.

The largest digital token headed to its first back-to-back increase in almost two weeks, adding 4.6 percent to $8,121 by 12:13 p.m. in New York, after earlier rising above $8,600 for the first time this week, according to prices compiled by Bloomberg.

Rival coins Ripple, Ethereum and Litecoin held single-digit gains, even after a Goldman Sachs Group Inc. report said most virtual currencies won’t survive a coming shake-out.

Bitcoin’s more than 40 percent surge from its low point yesterday was “partly due to U.S regulators’ comments that they’re planning a ‘do no harm’ approach” in any new rules, said Daire Ferguson, chief executive officer of Irish online currency platform AvaTrade.

The heads of the U.S. Commodity Futures Trading Commission and the Securities and Exchange Commission said lawmakers may need to pass legislation that gives federal agencies jurisdiction over Bitcoin’s spot market and associated online trading platforms.

“The market was certainly worried that they might come out harsher,” said Mati Greenspan, market analyst at currency trader eToro in Tel Aviv. “In fact, they were quite soft, which is mostly in line with all of their previous messages.”

(Newsmax wire services contributed to this report).

© 2018 Newsmax Finance. All rights reserved.

   
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Economic guru Nouriel Roubini isn’t a big fan of the current financial craze of bitcoin and other cryptocurrencies.
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2018-50-07
Wednesday, 07 February 2018 01:50 PM
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