Prices stabilized around $48,000 in early trading Tuesday, but that’s still a more than 10% drop from Monday’s levels.
On Monday, Yellen, a former chair of the Federal Reserve, raised some doubts as well.
“It is a highly speculative asset, and I think people should beware. It can be extremely volatile, and I do worry about potential losses that investors in it could suffer,” Yellen said.
Negative comments from Gates didn’t help either.
“I do think people get bought into these manias, who may not have as much money to spare, so I’m not bullish on bitcoin,” Gates said.
“My general thought would be that, if you have less money than Elon, you should probably watch out.”
It’s also worth noting that Gates, like his good friend Warren Buffett, has been bearish on bitcoin for some time — a position that could have lost average bitcoin investors a lot money if they had listened to him.
Despite the recent pullback, bitcoin prices are still up more than 65% so far in 2021.
That dramatic surge is raising alarm bells for many on Wall Street, reminding some veteran strategists of previous market bubbles and speculative frenzies.