Bitcoin bubble? Price (BTC) of cryptocurrency falls back below $9,000

Bitcoin is back below $9,000 after recovering from a major sell off on Friday which had sent the cryptocurrency plunging lower than $8,000.

It was trading at around $8,500 on Sunday, down seven per cent from Saturday when it had started to stabilise from a major downturn that wiped billions from its value late last week.

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Fears over tighter regulation have been blamed for the sell off, which has also heightened fears of a bitcoin bubble.

A leading economist who predicted the financial crash of 2008 labelled it the “mother of all bubbles”on Friday.

Nouriel Roubini, a professor of economics at New York University slammed the cryptocurrency which had been nearing $20,000 before Christmas, as favoured by “charlatans and swindlers” and the “biggest bubble in human history” in an interview with Bloomberg news.