London Daily

Focus on the big picture.
Thursday, Oct 01, 2026

What the #)$*#@)($ is happening with Bitcoin's insane record run?

What the #)$*#@)($ is happening with Bitcoin's insane record run?

Bitcoin is crashing -- upward. It just passed $28,000 and shows no signs of stopping.
The digital currency has a market value north of $500 billion. Think Bitcoin is just a fad? It's worth more than Visa (V) or Mastercard (MA). Or Walmart (WMT).

Bitcoin passed $20,000 for the first time just 11 days ago. Now it's knocking at $30,000's door.

Its rapid rise has been remarkable -- or insane, depending on your appetite for risk. But there's some logic to the run-up: Investors are pouring money into bitcoin and other cryptocurrencies during the 1Covid1-19 pandemic as the Federal Reserve sent interest rates near zero (and expects to keep them there for several more years), severely weakening the US dollar.

That makes bitcoin, comparatively, an attractive currency. There's a set limit to the number of bitcoins on the planet, and investors believe that once the supply runs out, the digital coin's value can only increase.

Also aiding in bitcoin's soaring valuation: Big, name-brand investors are stockpiling it, and huge consumer companies are embracing it. That's adding a dose of validity and appeal to cryptocurrency for mainstream investors. For example, a top executive at BlackRock (BLK) recently said the cryptocurrency can replace gold, and Square (SQ) and PayPal (PYPL) have both embraced bitcoin.

As bitcoin surges to all-time highs, cryptocurrency brokerage Coinbase, the most prominent cryptocurrency exchange, has signaled its intent to go public.

Still, the recent cryptocurrency surge is showing signs of a melt-up -- over-enthusiasm fueled by the fear of missing out, not simply market fundamentals.

Take Elon Musk's sarcastic tweet about bitcoin rival Dogecoin last week: The digital coin, which itself was constructed as a cryptocurrency parody, shot up 20% immediately after Musk threw his support behind it on Twitter.

Anhony Scaramucci, Skybridge Capital's founder, has a big stake in bitcoin, but even he says people need to watch out. He told CNN Business earlier this month that it could be a solid addition to the average investor's portfolio -- but you've got to have the stomach for it.

On CNN Business' "Markets Now" live show earlier this month, Scaramucci said people have begun to accept bitcoin -- and since it appears in so few portfolios, it has plenty of room to grow. Still, bitcoin is a volatile asset and will be a risky holding if you invest in it.

"This thing has a tendency to crash up," he said. "It is due for a correction, and these corrections can be violent."

Scaramucci said bitcoin could suddenly tumble 20% to 50%.

"You have to be very cautious," he added.

But he also highlighted bitcoin's staying power over the course of the past decade: If you took $1 and put 99 cents of it in cash and a penny in bitcoin, that investment strategy would have outperformed $1 invested in the S&P 500 (SPX) over the last 10 years, he noted.

"Bitcoin's best days are ahead of it, but it's going to be volatile and I think people need to be prepared for it," Scaramucci told CNN Business.
Newsletter

Related Articles

0:00
0:00
Close
Southwest England Faces Flood Alerts After Heavy Autumn Storms
UK Expands Funding for Rapid Electric Vehicle Charging Infrastructure
Welsh Government Approves Funding to Upgrade South Wales Transport
Northern Ireland Tensions Rise as Orange Order Rejects Drumcree Compromise
NHS Leaders Back Early Design of Proposed National Care Service
More Than One-Third of Regional UK Universities Face Financial Deficits
UK Current Account Deficit Narrows as Cross-Border Financial Flows Remain Strong
Bank of England and FCA Issue New Rules for Stablecoins and Digital Assets
MI5 Warns UK Universities Over Research Links With Chinese Institutions
UK Energy Price Cap Rises 4% as Electricity VAT Is Temporarily Suspended
Equity Calls for UK Personality Rights to Protect Performers From AI Replication
OpenAI Pauses Advanced Model Training Following Safety Concerns
Scottish Government Proposes Replacing 32 Councils With Larger Regional Authorities
Ofgem Raises UK Household Energy Price Cap by 4% From October
UK Counter-Terrorism Police Continue Investigation After Five Arrests Near RAF Fairford
OECD Cuts UK 2027 Growth Forecast to 1%
Labour Says State Pension Triple Lock Remains Protected Through Current Parliament
Andy Burnham Pledges National Care Service With Free Social Care in England
Six Flags Permanently Shuts Landmark X2 Roller Coaster Following Safety Scandals
Metropolitan Police Rule Out Terrorism in Golders Green Stabbing Investigation
Lithium-Ion Battery Identified as Cause of Fatal Merseyside House Fire
UK Department Rejects New Sea Use Framework Due to Stakeholder Fatigue
Major Thames Water Pipe Burst Causes School Closures in London
Aldi Commits £900 Million to Expand UK Supermarket Network
Scottish Affairs Committee Warns Skills Shortages Threaten Defence Sector Expansion
Parliamentary Committee Warns Northern Ireland Budget Deadlock is Stalling Economic Growth
NHS Hospitals in England Face Severe Shortages of Essential Medications
Home Secretary Signals Major Overhaul of UK Immigration and Leave to Remain Policies
Chancellor Promises New Job Schemes Alongside Strict Fiscal Discipline
Energy Secretary Proposes Taxpayer-Funded Green Transition and National Electricity Grid
UK Government to Renationalise Avanti West Coast Railway Franchise in March
Prime Minister Andy Burnham Pledges Major Social Care and Infrastructure Reforms
Five Suspects Released on Bail Following Alleged Bomb Plot Near RAF Fairford
UK Diesel Prices Hit Record High of 199p Per Litre
Transport for Wales and Network Rail Complete Electrification of South Wales Metro
Defra Expands Incentives for Sustainable Farming and Biodiversity in England
Northern Ireland Executive Approves Funding Package to Resolve Public Sector Pay Disputes
Universities UK Warns of Financial Insolvency Risks for Higher Education Institutions
UK Prisons Activate Emergency Protocols to Manage Capacity Pressures
UK Government Establishes New Safety Standards for Frontier AI Models
Home Office Tightens Skilled Worker Visa Requirements and Dependent Rules
Ministry of Defence Restructures Royal Navy Frigate Procurement to Prevent Overruns
UK Government Mandates New Housing Targets to Address National Shortage
UK and Scottish Governments Reach Agreement on North Sea Energy Transition
NHS Launches Digital Overhaul to Reduce Surgical Backlogs in England
Bank of England Holds Interest Rates as Service Sector Inflation Persists
UK Chancellor Announces Fiscal Consolidation Measures to Stabilize National Debt
RNLI Chief Executive Condemns Misinformation and Abuse Targeting Volunteer Crews
Metropolitan Police Charge Swindon Man with Assisting Foreign Intelligence Services
British Intelligence Report Warns Environmental Collapse Threatens Global Defense Infrastructure
×