bitcoin investors should be wary as central banks end their bond-buying stimulus programmes, threatening to deflate bubbles in riskier assets such as the digital currency. Scores of investors bought into Bitcoin, turning many into millionaires, as quantitative easing suppressed the yields on bonds and increased the allure of alternative assets, including tech stocks. But coin holders could lose their money faster than they made it if higher interest rates begin to lure investors back to traditional assets.
Bitcoin investors should be wary as central banks end their bond-buying stimulus programmes, threatening to deflate bubbles in riskier assets such as the digital currency. Scores of investors bought into bitcoin, turning many into millionaires, as quantitative easing suppressed the yields on bonds and increased the allure of alternative assets, including tech stocks. But coin holders could lose their money faster than they made it if higher interest rates begin to lure investors back to traditional assets.