MARKET REPORT: Bitcoin falls from record highs after frenzy cools

Bitcoin retreated sharply from record levels yesterday, fuelling fears cryptocurrencies are in a bubble that may be about to burst.

The digital coin hit an all-time high of $73,803 on Thursday as it took its gains for this year alone to over 70 per cent. But it fell as low as $65,584 yesterday as its white-knuckle ride continued.

Crypto enthusiasts believe bitcoin will top $100,000 this year.

But others warn that investors could lose everything.

Bank of America chief investment strategist Michael Hartnett told Bloomberg TV that markets are showing ‘characteristics of a bubble’ as the US Federal Reserve prepares to cut interest rates.

White-knuckle ride: Crypto enthusiasts believe bitcoin will top $100,000 this year

He pointed to crypto as well as technology and artificial intelligence-related stocks.

After reaching an earlier peak close to $69,000 in November 2021, bitcoin crashed to below $16,000 within 12 months. It has since rallied strongly to record highs, but analysts warned it remains volatile and could fall further if the Fed proves less willing to cut rates than hoped.

On the stock markets, the FTSE 100 inched down 0.2 per cent, or 15.73 points, to 7727.42 and the FTSE 250 edged up 0.1 per cent, or 26.9 points, to 19512.91.

British Airways owner IAG took to the skies after the City turned positive on the stock.

Credit agency Moody’s put the company’s rating on review for an upgrade and broker Raymond James raised its outlook. Shares flew 6.2 per cent, or 9.2p, to 158.15p.

Greencore gained 3.5 per cent, or 3.7p, to 110.6p after the activist investor Oasis Management built up a stake in the sandwich maker.

The Hong-Kong based fund, whose holding is just under 5 per cent, is reportedly trying to pile pressure on the company to pay a dividend for the first time since 2020.

Oasis also owns shares in London-listed firms including the outsourcing giant Mitie Group (down 0.2 per cent, or 0.2p, to 104.2p), second-hand electronics retailer Music Magpie (down 4 per cent, at 0.3p, to 7.2p) and fashion firm Superdry (up 9.9 per cent, or 2.4p, to 26.6p).

Investors in Bodycote will be in line for a payout as the heat treatment specialist plans to buy back £60m worth of shares.

The announcement came as the group said revenues rose 8 per cent to £802.5m last year and profits increased 17pc to £111.7m. Shares added 2.5 per cent, or 15.5p, to 647p.

Bank of Georgia will buy back an extra £29m worth of shares from investors once its £18m repurchase programme ends around June. But the digital lender said its results for 2023 were hit by a claim settlement. Shares dropped 6.5 per cent, or 335p, to 4845p.

WH Smith’s finance boss Robert Moorhead is to step down after more than a decade in the job, with luxury retailer Burberry’s Max Izzard to take up the role from December.

Shares in the retailer fell 0.5 per cent, or 6p, to 1240p. Burberry gained 0.8 per cent, or 9.5p, to 1269.5p

Trainline received upgrades from Stifel and Barclays, a day after the online ticketing app reported booming sales. Shares, which soared 13 per cent on Thursday, added 2.3 per cent, or 8.6p, to 378.4p.

This post first appeared on Dailymail.co.uk