Crypto

What’s the Cryptocurrency Bubble and When Will it Burst?

Published

2 years ago

January 10, 2024

What’s the Cryptocurrency Bubble and When Will it Burst?

You’ve seen those dramatic peaks and valleys in Bitcoin prices lately that leave your stomach doing flip-flops.

Talk of bubbles bursting sends shivers down your spine. Is the crypto craze just froth that’s bound to evaporate? Or is blockchain the revolution set to rewrite all the rules?

Before you cash out or go all in, get the inside scoop on understanding cryptocurrency bubbles. Learn what’s causing this volatility, if markets are destined for a big pop, and whether your coins can recover.

In this article, we analyze the bubble buzzwords, and chart past crashes that will equip you with expert tricks to weather the impending crypto storm.

So buckle up and hang on tight. This bubble breakdown will give you the insights and fortitude to thrive, no matter which way the cryptocurrency winds blow next.

Brief History of Crypto Bubbles

Cryptocurrencies are notorious for their dramatic rises and falls, with Bitcoin leading the charge in creating both frenzied bubbles and devastating bursts within the crypto market.

Looking back at the short but volatile history of Bitcoin and other major cryptocurrencies, distinct bubble patterns emerge.

For example, Bitcoin had its first significant bubble in 2013, reaching a peak of over $1,000 in November after starting the year around $13. Mainstream media attention drove prices upwards as exchanges and users jumped on the bandwagon.

The bubble soon burst, with Bitcoin crashing in 2014 to around $300. This represented an almost 80% price drop, leading many to pronounce Bitcoin dead.

Similarly, after hovering around $1,000 per Bitcoin in early 2017, prices accelerated rapidly as crypto enthusiasm exploded. By December 2017 Bitcoin had soared to almost $20,000 per coin, bringing other cryptocurrencies like Ethereum along for the ride.

This bubble was driven by hype cycles, fears of missing out, and retail investors pouring savings into cryptos hoping to strike it rich.

Unsurprisingly the 2017 bubble could not be sustained. After peaking around Christmas, Bitcoin prices crashed over 2018. By December 2018 Bitcoin was trading below $4,000 per coin – almost 80% down from its peak.

The broader crypto market followed a similar trajectory, shedding billions in total market capitalization. The crash led to a “crypto winter” and questions about the future viability of cryptocurrencies.

4 Signs of Cryptocurrency Bubble

In 2021 cryptocurrency prices exploded once more, taking Bitcoin to new highs above $60,000 by April 2021. Signs that this was another bubble cycle include mainstream media and retail trading mania, celebrity promotions, scams, and inexperienced investors mortgaging homes to buy crypto.

In recent months, Bitcoin experienced a prolonged price rally throughout the month of January, marking one of the longest consecutive winning stretches for the cryptocurrency over the past 6 years. This upward momentum spilled over to benefit prices across the broader digital asset markets.

However, analysis suggests that this surge was not fueled by high trading volumes or liquidity.

Essentially, speculative mania and hype cycles around overvalued assets. This latest cryptocurrency run-up also comes on the heels of the FTX crash due to its bankruptcy in November 2022, which severely hampered liquidity across crypto markets industry-wide.

Since the start of 2023, Bitcoin has carved out substantial gains in a relatively short period. However, experts believe this rise has been built on an unsustainable foundation of low liquidity and speculative fervor rather than lasting traction.

It remains to be seen whether Bitcoin and other major cryptocurrencies can maintain altitude or if this tentative ascent was just the latest bubble destined to burst.

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4 Signs Of The Next Cryptocurrency Bubble Burst

1. Prices Lose Touch with Fundamentals

One warning sign a crypto bubble is forming and set to burst is when prices become drastically disconnected from underlying value fundamentals. Most cryptocurrencies don’t have clear valuation models like traditional assets, but experts suggest prices are in a bubble when coins trade far beyond reasonable adoption or utility.

2. Retail Trading Frenzy

Cryptocurrency bubbles are often fueled by hype-driven retail investing mania. Warning signs include friends, family, and neighbors talking about crypto, mainstream media hype, celebrity promotions, and inexperienced investors taking on massive exposure. Previous burst bubbles were marked by the general public piling into coins near the peak.

3. Scams and Fraud ProLiferation

The cryptocurrency Wild West lends itself to scams that reach a peak during bubble cycles. The next burst may be preceded by rising instances of fraud, questionable ICOs, fake celebrity endorsements, pump-and-dump schemes, and shady exchanges – indicating hype has gone too far.

4. Technical Analysis Flashing Warning Signs

While crypto markets are extremely difficult to model and predict, technical analysis can identify indicators of impending corrections.

Warning signs include a high Relative Strength Index (RSI), slowing price momentum, rising volatility, and violated support levels. Sophisticated crypto investors closely watch these signals for signs of trouble brewing.

Also Read: Crypto Investments: How To Do It Responsibly?

What Happens After The Burst?

So a cryptocurrency bubble has popped and prices come crashing down, now what? Based on past bubbles like in 2018 and 2021, some typical aftermaths include:

Prices Bottom Out

After a major correction, cryptocurrency prices tend to continue dropping for some time as people panic sell and losses compound. For example, Bitcoin bottomed out around 80% below its peak in 2018 before stabilization kicked in.

Crypto Winter Sets In

The bubble aftermath is often referred to as “crypto winter” – a period of sustained bearish sentiment, decreasing interest, and limited price gains. Volume and trading activity dry up as investors turn away from crypto. This can last over a year after major crashes.

Projects Shutter Operations

The fallout hits hard. Many cryptocurrency projects, companies, and exchanges cannot survive the depressed business environment post-crash and close-up shop. In 2018, over 800 crypto ventures shuttered following the bubble burst.

Underlying Development Continues

Behind the scenes, development continues on building blockchain infrastructure, networks, and innovative crypto applications – even amid lower prices. The underlying technological value persists regardless of market conditions.

Market Consolidates and Recovers

Crashes wipe out speculators but the strongest hands remain. As hype dissipates, the market consolidates around cryptos with staying power until prices stabilize and interest returns. Of course, the rollercoaster ride eventually heads upwards again with the next bubble building.

While the aftermath of a burst crypto bubble can be painful, history shows the market does recover in time. The key is planning ahead and only investing what you can afford to lose.

Also Read: The Role of AI to Identify Sustainable Crypto Breakouts

How to Survive the Crypto Bubble Burst

Have a Game Plan in Place. Before investing, understand your risk tolerance and have a strategy for different scenarios. Set targets for taking profits on the way up and limit stop-losses on the way down.

Maintain a Defensive Portfolio. Don’t overexpose yourself to crypto, and choose established coins with better fundamentals. Allocate only a responsible percentage of assets so you remain financially secure even with drops. As always, try not to go for unbacked crypto assets. Research shows that they cannot help to diversify portfolios.

Keep an Eye on Warning Signals. Watch for signs like cooling technical indicators, positive news generating little market movement, and bubbles in DeFi platforms. React quickly rather than ignoring the writing on the wall.

Mitigate Emotional Reactions Don’t panic sell. Bursts historically pass and markets recover. Have conviction in your investments and avoid fear-based moves you may regret long-term.

Take Profits on the Way Up Nobody can time peaks perfectly. Scale out of positions when hitting goals, allowing you to capture gains while maintaining exposure for future volatility swings.

Also Read: Diversify Your Portfolio with Crypto Stocks: Here’s Why You Should

Conclusion

Cryptocurrency bubbles may be nerve-wracking, but they have become an expected phenomenon in the market’s short history. The surges produce life-changing gains, while the bursts create incredible losses. But bubbles come in cycles that see crypto eventually regain steam.

The central question becomes whether this is a sustainable, albeit turbulent, trajectory for cryptocurrencies or a house of cards bound to fully collapse.

History suggests cryptocurrencies are resilient despite their volatility. Blockchain as a technology and crypto coins like Bitcoin withstand repeated booms and busts while continuing advancement in fits and starts.

Still, the modern markets remain in uncharted territory. The scale and frequency of recent bubbles breed uncertainty.

By understanding the causes of cryptocurrency bubbles, recognizing warning signs of impending bursts, acknowledging these patterns will likely persist, and strategizing to navigate the manias and crashes, investors give themselves the best chance of coming out ahead when the winds shift suddenly.

Cryptocurrencies offer an opportunity worth chasing for many, but only with full knowledge of the turbulence these assets often provoke. Buckle up and brace yourself if you decide to pursue the ride – bubbles will likely continue to blow and pop in crypto’s foreseeable future.

Crypto

After hundreds of millions lost to fraud, NC lawmakers push for crypto ATM protections

Published

3 hours ago

June 9, 2026

Press Room

After hundreds of millions lost to fraud, NC lawmakers push for crypto ATM protections

North Carolina lawmakers on Tuesday advanced a bill to protect consumers from cryptocurrency kiosk fraud.

House Bill 920, which passed the House with a 115-to-0 vote, aims to regulate an industry that its author claims is unregulated in the state.

“It’s the wild, wild West,” Rep. Neal Jackson, R-Moore, said during a committee discussion on Tuesday. “There is no regulation whatsoever in North Carolina. That’s what we’re trying to do here.”

Lawmakers cited a growing amount of fraud as the reason for the bill. About $389 million in losses were reported last year through cryptocurrency ATMs, a 58% increase from 2024, according to the FBI. The majority of those impacted are 60-plus.

The bill now goes to the Senate for consideration. It seeks to:

Require licenses for all kiosk operators under the Money Transmissions Act.
Place operators under the supervision of the Commissioner of Banks.
Require fraud warnings and transaction receipts for every transaction.
Require compliance and consumer protection officers that are always available.

It also seeks to place limitations on transactions in an effort to reduce fraud, requiring a $2,000 daily limit for the first 30 days for new customers and a $5,000 daily limit for existing customers, who would qualify after 30 days.

While other states have service fees between 20% and 30%, Jackson suggests putting a cap at 14%.

State Rep. Tim Longest, D-Wake, expressed concern about having the kiosks at all in the state. He said the bill’s protections could be stronger.

“These machines can be the subject of fraud, basically facilitating fraud on seniors and other vulnerable individuals and in those cases,” Longest said. “… In crafting regulations, I think it’s important that we ensure consumers are adequately protected by those regulations and I do not believe that, under the language of the bill currently before you, those regulations are sufficient to protect consumers.”

Jackson pointed to this bill as an effort to regulate, not shut down, cryptocurrency kiosks in the state and said there are even more consumer protections in place.

David N. Tente, the executive director of the ATM Industry Association, said the bill — and others like it — is problematic because it requires operators to provide refunds to fraud victims in certain instances.

“In most cases, the cash in the ATM/kiosk does not belong to the operator, which means that returning any of it would be, technically, theft,” Tente said. “If you give someone cash for something, and you change your mind after they leave, you probably won’t get it back.”

He added: “We certainly feel sorry for those being scammed, but there are very simple things you can do to avoid it.”

Tente said these kinds of scams have existed for centuries, adding: “They are still here — just using different means of payment.”

Crypto

Zcash Climbs 80% Since June 5 as Traders Shrug off Orchard Bug Fears

Published

14 hours ago

June 9, 2026

Press Room

Zcash Climbs 80% Since June 5 as Traders Shrug off Orchard Bug Fears

Key Takeaways

The Orchard Vulnerability

Privacy coin Zcash (ZEC) surged on Tuesday, jumping 11.3% to $478 as it maintained a steady recovery that began shortly after it plunged to just under $265. At the time of writing (5:32 a.m. EST), the privacy coin’s latest climb pushed its gains since June 5 to approximately 80% and saw ZEC’s market capitalization reclaim the $8 billion threshold.

The coin, alongside rival monero, was one of a handful of altcoins that logged gains exceeding 5% even as bitcoin dipped below the $63,000 threshold. ZEC’s surge above $470 on June 9 resulted in $11.5 million in short positions on the coin being wiped out in 24 hours, compared with $2.43 million in liquidated long bets.

While Zcash has since wrestled back its top-dog status from chief rival Monero, the asset is still trading at a steep discount compared to its pre-June 5 peak of just over $600. Before the correction, ZEC was riding a powerful wave of momentum, fueled by a resurgence in the crypto-privacy narrative and high-profile endorsements from industry heavyweights like Arthur Hayes. However, that bullish trajectory ground to a sudden halt. The catalyst for the reversal was the unsettling discovery of a critical vulnerability within Zcash’s Orchard shielded pool—a zero-knowledge security flaw that had quietly lay dormant since 2022.

Despite this, supporters of the privacy coin believe the uncovering of the bug has not damaged ZEC’s long-term appeal. Posting on X, Eunice Wong insisted there is an extremely low likelihood an exploit was executed and said traders who offloaded their holdings had overreacted.

“Long-term thesis hasn’t changed. In an AI-driven world where every transaction is tracked, financial privacy will become the scarcest asset, and ZEC is still one of the strongest privacy plays in crypto. Catching this falling knife is going to look like a genius move,” Wong wrote.

Matthew Brienen, managing partner at Cryptocharged, said while he recently reduced his ZEC holdings, it was purely a risk-management decision rather than a change in conviction. Nevertheless, he offered an explanation for why caution is warranted even if there is no proof that ZEC was counterfeited.

“The Orchard bug isn’t a confirmed inflation event. It’s a confirmed inability to prove supply integrity. Those are not the same thing. The most important fundamental fact to remember is that turnstile accounting is not the same as proving Orchard balances are legitimate. You can track what entered. You can track what exited. That doesn’t prove every claim inside the pool was valid,” Brienen explained.

He added, however, that if counterfeit Orchard notes do exist, they could remain hidden until redemption is ultimately forced. According to Brienen, the recent price action suggests that is exactly what the market is trying to price in.

Crypto

Top 100 Bitcoin Treasuries Now Hold 1.26M BTC

Published

24 hours ago

June 9, 2026

Press Room

Top 100 Bitcoin Treasuries Now Hold 1.26M BTC

Key Takeaways

Bitcoin Treasuries Are Turning Scarcity Into Strategy

Institutional bitcoin accumulation has grown dramatically, with the top 100 holders now controlling 1,258,090 BTC as of June 8, 2026, according to a chart published on X by HODL15Capital. This group includes public companies, private firms, mining operators, and treasury-focused entities, reflecting specialized corporate allocations alongside one dominant buyer.

At the top of the list, Strategy holds exactly 845,256 BTC, far surpassing every other entity. Twentyone Capital follows with 43,514 BTC, and Japan’s Metaplanet holds 40,177 BTC, showing that institutional BTC accumulation is global and spans multiple industries. Marathon Digital contributes 35,303 BTC.

Top 100 bitcoin treasury companies. Source: HODL15Capital

The size of Strategy’s lead reveals how uneven the race has become. One company controls more bitcoin than the rest of the top 100 combined, turning corporate treasury policy into a marketwide talking point. For investors, that concentration makes Strategy one of the clearest equity-market proxies for BTC exposure.

Other major names on the chart include Coinbase, Riot Platforms, Tesla, Spacex, Cleanspark, Block, Galaxy Digital, American Bitcoin Corp., and Hut 8. That lineup makes the trend easy to understand: bitcoin is no longer only a crypto-sector balance sheet bet. It now reaches miners, exchanges, technology firms, private companies, and treasury vehicles.

The BTC Concentration Across Sectors and Borders

The global spread of BTC holders is as notable as the headline total. Metaplanet’s top ranking shows adoption is no longer U.S.-centric, with participants from Japan, Canada, Europe, and Asia signaling worldwide corporate and institutional demand for bitcoin.

The supply angle is what makes the chart matter beyond crypto circles. The top 100 holders control more than 6% of bitcoin’s maximum 21 million supply, giving a singular corporate buyer a highly visible role in market liquidity. For shareholders, that creates both upside potential and sharper exposure to crypto-driven swings.

Overall, the chart illustrates a highly centralized institutional concentration of bitcoin reserves. The focus is no longer just who holds the most, but how BTC has become a balance sheet battleground, with companies using treasury positions to signal conviction, attract investors, and position themselves in a more bitcoin-integrated financial landscape.