MARKET REPORT: Bitcoin falls from record highs after the frenzy subsides

Bitcoin pulled back sharply from record levels yesterday, fueling fears that cryptocurrencies are in a bubble about to burst.

The digital currency reached a record high of $73,803 on Thursday, with gains of more than 70 percent this year alone. But yesterday it fell to $65,584 as the ride continued.

Crypto enthusiasts believe Bitcoin will surpass $100,000 this year.

But others warn that investors could lose everything.

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

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

After reaching a previous peak of nearly $69,000 in November 2021, bitcoin crashed below $16,000 within 12 months. Since then, yields have risen sharply to record highs, but analysts warned that yields remain volatile and could fall further if the Fed proves less willing to cut rates than hoped.

On the stock markets, the FTSE 100 fell 0.2 percent, or 15.73 points, to 7727.42 and the FTSE 250 rose 0.1 percent, or 26.9 points, to 19512.91.

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

Credit agency Moody’s revised the company’s rating for an upgrade and broker Raymond James raised its outlook. Shares rose 6.2 percent, or 9.2p, to 158.15p.

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

The Hong Kong-based fund, which owns just under 5 percent, is reportedly trying to pressure the company to pay a dividend for the first time since 2020.

Oasis also owns shares in London-listed companies including outsourcing giant Mitie Group (down 0.2 percent, or 0.2 cents, to 104.2 cents), second-hand electronics retailer Music Magpie (down 4 percent, to 0.3 cents, to 7.2 cents). ) and fashion company Superdry (+9.9 percent, 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 sales rose 8 percent to £802.5 million last year and profits rose 17 percent to £111.7 million. The shares added 2.5 percent, or 15.5p, to 647p.

The Bank of Georgia will buy back £29 million worth of shares from investors once its £18 million buyback program ends around June. But the digital lender said its 2023 results were affected by a claims settlement. Shares fell 6.5 percent, or 335p, to 4845p.

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

Shares in the retailer fell 0.5 percent, or 6p, to 1,240p. Burberry gained 0.8 percent, or 9.5 cents, to 1269.5 cents

Trainline received upgrades from Stifel and Barclays, a day after the online ticketing app reported booming sales. The shares, which rose 13 percent on Thursday, added 2.3 percent, or 8.6p, to 378.4p.