Bitcoin biggest bubble in history, says economist who predicted 2008 crash

Nouriel Roubini calls cryptocurrency the ‘mother of all bubbles’ as it falls below $8,000

The economist credited with predicting the 2008 global financial crisis said a 12% fall in the value of bitcoin on Friday was the latest proof that the cryptocurrency was the biggest bubble in history and destined for a crash.

Nouriel Roubini, professor of economics at New York University, said bitcoin was “the mother of all bubbles” favoured by “charlatans and swindlers” as it fell below $8,000 (£5,600), marking a 30% drop since the beginning of the week as investors became increasingly twitchy about a clampdown on cryptocurrencies by regulators.

Bitcoin has lost more than half its value since hitting a peak of near $20,000 in the week before Christmas. Roubini said the sharp fall was the beginning of a crash that would see the value of the digital currency plummet “all the way down to zero”.