According to a Wall Street veteran named Peter Boockvar, there might be an epic crash hitting the cryptocurrency market soon. He is not sure if this crash will come to a grinding halt or be slow and steady – but according to him – it is coming.
Boockvar is currently a chief investment officer at Bleakley Advisory Group. He is certain that crypto is in a giant bubble and that the air is already coming out. As he said in an interview with CNBC, “When something goes parabolic like this has, it typically ends up to where that parabola began”.
He even contended that Bitcoin is in danger of dropping 90% from current levels and pointed to it as a classic bubble. He added that he “won’t be surprised if over the next year Bitcoin is down to $1,000 or $3,000”.
This is where Bitcoin was trading less than 12 months. Currently, the price of Bitcoin is somewhere above $11,000 but no one can see what is next for the leading cryptocurrency. According to Boockvar, the collapse is coming in tandem as the interest rates around the globe are rising. There are central banks to blame for this cryptocurrency gaze including the Federal Reserve.
Boockvar even asked rhetorically:
“You have to wonder if we never heard of quantitative easing, would there have been cryptocurrencies?”
According to him, the moment the cryptocurrency market cracks will be the one where risk assets will change. This could damage the stock market and will be based on psychology – and not on anything that is fundamentally wrong with the economy.