Peter Boockvar, Bleakley Advisory Group’s Chief Investment Officer (CIO) and a Wall Street veteran with over 25 years of experience, recently weighed in on bitcoin. According to the veteran, the cryptocurrency market is due for an epic crash.
While speaking on CNBC’s “Future Now,” Boockvar revealed that he doesn’t know whether the cryptocurrency crash will be slow and steady, as the market could also just come to a grinding halt, but he asserted it is coming.
The Wall Street veteran stated that the cryptocurrency market is in a giant bubble, out of which air is already coming out. According to him, when something “goes parabolic like this has, it typically ends up to where that parabola began.”
Boockvar’s bitcoin price prediction was a bearish one. Although he believes the cryptocurrency will be around for a while, he stated that it could drop as much as 90 percent this year. Per his words, it is a classic bubble, he said:
“I think over time – bitcoin is 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.”
This would get bitcoin, the number one cryptocurrency, back to where it was 12 months ago. At press time, according to Cryptocompare, bitcoin is trading at $10,717 as it is down 6% in the last 24-hour period.
The cryptocurrency crash will come in tandem with the rise of interest rates around the globe, the Wall Street veteran said. According to him, banks are to blame for bitcoin’s creation, as their policies irresponsibly printed money and ultimately made things worse.
He added that once the cryptocurrency bubble bursts, investor attitudes toward risky assets will change. He sees the stock market suffer some collateral damage, but all based on psychology.
Will Bitcoin crash? Some investors are bullish
Although it’s impossible to tell the future, we do know some Wall Street personalities and investors don’t believe a bitcoin crash is due. As covered by Core Media, Wall Street strategist Tom Lee has stated he sees the cryptocurrency hit $20,000 by mid-2018.
Moreover, cryptocurrency hedge fund BlockTower Capital recently invested nearly $1 million in a bet. The fund essentially paid $990,000 for the right to buy 275 BTC on December 28, 2018 at a $50,000 price per coin.
Nevertheless, other personalities claim the cryptocurrency is in a bubble. These include Nobel laureate Robert Shiller, who said the cryptocurrency will collapse, but could last 100 years.