Bitcoin is in a "classic bubble" and has even gone beyond the "absurdity" of Holland's tulip bulb mania in the 1630s, widely followed investor Dennis Gartman told CNBC on Thursday.
The cryptocurrency rocketed above $19,000 for the first time on Thursday before falling sharply from its record high.
"What we're seeing in the past 48, 54, 72 hours … is utter and complete nonsense," the editor and publisher of The Gartman Letter said in an interview with "Closing Bell."
Bitcoin began the year below $1,000. On Tuesday night, it topped $12,000 after dropping 20 percent the week before. Between 5 and 6 a.m. ET on Wednesday, it jumped past $15,000.
On Thursday, bitcoin hit a high of $19,340 on the Coinbase exchange, which accounts for about a third of the digital currency's volume on any given day. It then fell more than 20 percent from that level to $15,198.63.
At 5:39 p.m. ET, the digital currency traded at $16,315.03. The price on Coinbase has traded at a premium to the level on other exchanges.