There is no doubt that cryptocurrencies are hot right now, especially since they have the backing of the Trump administration. Therefore, it is easy to understand why investors have been piling into digital assets like Bitcoin. However, Nouriel Roubini, who is an NYU professor and a Hudson Bay Capital senior advisor, says that there will be a “big bubble” in crypto followed by a drop, according to Yahoo Finance. Roubini, who was nicknamed “Dr. Doom” for predicting a housing market recession in 2006, called meme coins “embarrassing” and warned that people are “going to lose their shirts.”
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He pointed to Meme coins, like Trump and Melania coins, which have gained attention but are often unsustainable in the long term. Indeed, Trump coin’s market cap surged to $73 billion within 48 hours, only to drop to around $7 billion. Roubini criticizes these coins for promoting “massive nepotism” and “conflict of interest” and even labeled them as “disgusting.” Separately, Anthony Scaramucci, a former Trump Cabinet member and founder of Skybridge Capital, called the Trump coins “gambling tokens” and a “clearing station for bribery.”
In addition, Roubini warned that investors may fall victim to the classic cycle of buying at the peak and selling at the bottom, which is often driven by the fear of missing out on the way up and the fear of losing everything on the way down. However, despite the negative comments, he also acknowledged the potential benefits that crypto can have in terms of financial innovation, which could provide improved financial services.
Is Bitcoin a Buy?
Using TipRanks’ technical analysis tool, the indicators seem to point to a positive outlook for Bitcoin. Indeed, the summary section pictured below shows that 15 indicators are Bullish, compared to two Neutral and five Bearish indicators.
