Bitcoin Could Lose 90% of Its Value this Year

Bitcoin/Illustration

Bitcoin

Bitcoin, Ripple, Ethereum and other crypto-currencies tried to stabilize on Monday, but finally saw a sharp decline. Bitcoin was trading in the evening at about $ 10,500 (-8.5%) on Bitfinex, while Ethereum yielded 6.2% to $975. Ripple was trading at $ 1.20, giving up 12.7%.

Peter Boockvar, chief investment officer of Bleakley Financial Group, said last week in an interview with CNBC that Bitcoin was showing signs of a “classic bubble”. And according to the eminent specialist, it could soon come to an end.

Boockvar is not the first to express such an opinion, and the recent evolution of Bitcoin would give him reason, with a rather brutal fall since the historic peak recorded at $ 19,891 mid-December on Bitfinex.

Parabolic rises end badly, in general

The specialist notes that the growth of Bitcoin has become ‘parabolic’ in recent months, that is to say that it has greatly accelerated, at least until the recent relapse. “When something becomes parabolic at this point, it usually ends where the parable started,” he said.

The specialist also addded, based on his experience, that this alleged ‘bubble’ could take a quite significant turn back. “I would not be surprised if, in the next year, it falls back to $ 1,000 or $ 3,000.” A price of $ 1,000 on Bitcoin would represent, compared to current levels, a fall of 91%. A return to the $ 3,000 zone would translate to a drop of 74%!

Must Read:  Bitcoin is in Freefall, Goes Under 12,000

The Wall Street veteran anticipates a possible crash of Bitcoin in the months to come. He is not seem certain of the magnitude of the correction, but considers bitcoin a gigantic bubble. The ‘prophecy’ of the guru may seem at first sight catastrophist, but would ultimately push bitcoin back 12 months.

Boockvar also believes that this fall will coincide with the rise in rates worldwide. The strategist also refers to central banks around the world, and first of all to the Fed. According to him, these central banks, by their outrageously accommodative monetary policies of the last years, would be somehow responsible for the current madness of cryptocurrencies.

Boockvar also believes that the likely fall of cryptocurrencies should impact the financial markets. Boockvar expects investor risk attitudes to change significantly after what he calls the crypto-crack. This should result in particular collateral damages on the stock market.

Share
Eid Lee

Eid is a freelance journalist from California. He covers different topics for The Talking Democrat but focuses mostly on technology and science.