Peter Boockvar, a Wall Street veteran has predicted that there would be an epic crash in the cryptocurrency market before the year ends. He said bitcoin could lose about 90% of its value and come down to as low as $1000.
Boockvar: Crypto is a giant bubble
In an interview with CNBC’s Future Now, the Chief Investment Officer at Bleakly Advisory Group, Peter Boockvar predicted that over the next year the bitcoins will lose about 90% of its currency value.
The Wall Street veteran said he won’t be surprised if the prices of bitcoin drop down to as low as $1,000. He says that he isn’t sure if it will be a slow and steady dop or will come to a grinding halt but he is sure it is coming.
According to Boockvar, crypto is just a giant bubble which will burst and when it does the investors will be left in the cold. He further mentioned:
“When something goes parabolic like this has, it typically ends up to where that parabola began. I wouldn’t be surprised if over the next year it’s down to $1,000 to $3,000.”
Since last month, there has been a good downward plunge in bitcoins prices and as per the Wall Street veteran, this plunge just might be a precursor of what is to come. He further says the cryptocurrency could fall about 90% taking it back to the levels that it hasn’t been since February 2017. This was the time when prices had began their steep climb. According to Coinmarketcap, on Monday, the bitcoin prices came down another 12%, falling to $10,686.
Boockvar said on CNBC:
“I think over time Bitcoin’s going to be around for a long time but the price itself I wouldn’t be surprised if over the next year it’s down to $1,000 to $3,000.”
In the opinion of Boockvar, the collapse is coming alongside the rise in interest rate all over the globe. He basically blames the central banks and Federal Reserve for the craze of cryptocurrencies. Due to the easy money policies that were primarily designed to tone down the effects of global financial crisis led to the inclination towards cryptocurrencies.
He asked rhetorically “You have to wonder if we never heard of quantitative easing, would there have been cryptocurrencies?”
Boockvar explained that once cryptocurrency market cracks, the attitude of investors towards the risk assets will certainly change. He also said, the stock market could get affected as a collateral damage, however that would be just a psychology thing and nothing wrong with the economy for which bigger picture is needed.
The opinion of Boockvar is completely at odds with Thomas Lee, the bullish Wall Street pundit, who said last week that bitcoin will explode in 2018. He insists that right now is the best time to invest in the cryptocurrency market.
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I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.