4 Signs That a Crypto Bubble Is Forming—and How It Could Burst | Barron’s
Cryptocurrencies are off to a remarkable start this year, with
Bitcoin
rallying 40%. But signs of another bubble are already appearing—even with the last one barely over. Here are four warning signs of froth in the market, and what may need to change for the rally to continue.
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The Technicals Look Shaky
Bitcoin
‘s January rally was one of the cryptocurrency’s longest winning streaks in six years, and it has pushed up prices across the digital asset space. But that has happened on low liquidity, or lack of trading volume, and some of the same short-squeeze dynamics that fueled surges in
GameStop
(ticker: GME) and other “meme” stocks in 2021.