Bubble burst? Analyst says Bitcoin could collapse 90% this year and return to $ 1,000 ???
As the market looks at recent declines in digital currencies, veteran Wall Street analyst
Peter Boockvar makes a catastrophic projection for the cryptomoedas this year. For him, who is chief investment officer of the Bleakley Advisory Group, this market is a big bubble and is already starting to wither.
"When something is parabolic, this occurs, it usually ends where the parable started," he told CNBC. Boockvar claims that bitcoin is at risk of falling 90% from current levels. "I would not be surprised if next year it's $ 1,000 to $ 3,000," he said.
The analyst sees the collapse coming as interest rates rise around the world. "I hold central banks, including the Federal Reserve, accountable for the crypto-nomadic craze for their easy money policies that are designed to ease the effects of the global financial crisis," he said on the channel.
Once the crypto-currency market begins to crack, he argues, investors' attitudes toward risky assets will change. According to Boockvar, the stock market could see collateral damage, but everything would be based on psychology, not something that would be wrong with the economic fundamentals.
What do you think ?
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I don't think Bitcoin will follow a parabolic curve. Based on observation of market movements, Bitcoin's price is being driven by a "pump and dump" cycle with the deviation following largely emotional decisions.
If the coin were to "stabilize" which I believe will require much more widespread adoption, I would expect it to be valued at roughly $8,000 USD today with an overall growth over time. The limited supply and increasing demand suggest that growth will continue for at least the next four years (or until the mineable supply is exhausted).
As alt-coins gain ground, those that distinguish themselves from Bitcoin are the ones that will survive and grow overall. With ADA solving the problem of expensive and resource consuming transactions, it is poised to grow steadily and indefinitely. Steem/SBD being based on a marketable service platform are also positioned well for growth.
Paying attention to "blue chips" and learning about what they are doing could be a much better way to invest than Bitcoin in the long haul.
I agree I will write another article, and I saw this and decided to post, on the ADA issue I think altcoins all depends on bitcoin, if bitcoin falls, all altcoins fall, but I see bitcoin and other altcoins come to stay, there are several speculations, but I'll write another article, thank you!