‘Bubbles Are About To Start Busting’—Huge Price Swings Spark Fear Of A Stock Market And Bitcoin Crash

Bitcoin has rocketed this year, soaring along with the stock market that’s hit repeated all-time highs (even as Elon Musk quietly moving bitcoin sets alarm bells ringing).

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The bitcoin price has almost doubled since U.S. president Donald Trump retook the White House, hitting an all-time high of $123,000 per bitcoin as a crisis engulfs the Federal Reserve, while stock markets are also at all time highs.

Now, as traders bet on a controversial “infinite money glitch," some are warning the bitcoin price and stock market bubble could be about to burst as prices swing wildly.

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ForbesTesla CEO Elon Musk Confirms Wild Rumors As $37 Trillion ‘Emergency’ Predicted To Blow Up Bitcoin PriceBy Billy BambroughMORE FOR YOUU.S. president Donald Trump has helped the bitcoin price soar along with the stock market in recent ... More months.

ANP/AFP via Getty Images“The crypto market took a nosedive, losing almost 4% of its market cap over the last 24 hours,” Alex Kuptsikevich, FxPro chief market analyst, said in emailed comments and pointing to double-digit percentage declines for some of the biggest cryptocurrencies that’s wiped $100 billion from the combined crypto market.

“A reversal to growth will be needed to stop the build-up of pessimism for the entire crypto market, where corrective sentiment is intensifying.”

Bitcoin and stock markets could see a sell-off in coming weeks due to fears over Trump’s latest trade tariffs, due to take effect from August 1, or changes to the Federal Reserve’s expected cuts to interest rates, according to analysts with Piper Sandler.

"We recommend taking profits on stocks that have benefitted most from relief rally since early April,” Michael Kantrowitz, Piper Sandler’s chief investment strategist and head of portfolio strategy, wrote in a note seen by CNBC.

"The stocks most at risk after this move are those higher beta, lower-quality names that have seen huge multiple expansion without any improvement in the earnings outlook.”

Bitcoin has a “very tight directional correlation [with] equity market risk … thus, if we do get a sell-off in risk on assets, for any macro risk that gets priced in, bitcoin would likely decline as well over the near term,” Kantrowitz added.

Others are even more bearish with investment guru Robert Kiyosaki, the author of Rich Dad, Poor Dad, warning “bubbles are about to start busting.”

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Forbes‘Imminent’ Fed Nightmare Is Suddenly Coming True As The Bitcoin Price SoarsBy Billy BambroughThe bitcoin price soared this year, fueling fears a bitcoin price bubble could be about to burst.

Forbes Digital AssetsHowever, crash fears may be overstated, with some expecting a the market is about to “wake up.”

“Robert Kiyosaki, ever the doomsayer, is warning of multi-asset crashes. But the actual positioning? Not that dramatic,” Mati Greenspan, the founder of Quantum Economics, said in an emailed note, but warning of a major move on the way.

“Profit-taking has been modest. Options markets aren’t priced for panic. Open interest remains manageable. The mood isn’t greedy or fearful—it’s flat-out fatigued. And weirdly, that kind of 'whatever’ energy? Historically, it’s what you see before something wakes up.”