Peter Boockvar, the chief investment officer of the Bleakley Advisory Group, spoke on CNBC to announce that, according to him, there would have been a terrible crash of Bitcoin in 2018.
A dark period for the Bitcoin
Some financial analysts are very optimistic about the future of Bitcoin. This is absolutely not the case of Peter Boockvar predicts that a future is particularly bleak in the crypto-currency. According to him, the digital currency is on the verge of a crash. Why ? Well, simply because currently it represents a mere speculative bubble, and that it is on the point of exploding. The recent declines in the price of Bitcoin would be, according to him, the first signs of this breakdown.
Copy screen CNBC
He explained, in an interview for the american channel CNBC, the next thing is : “When an asset increases exponentially, as it has been the case for the Bitcoin, it usually ends up where it started “.
A crash inevitable ?
Peter Boockvar think of a fall that would vary between 70% and 90%. According to him, Bitcoin could drop to below $ 3,000. It could even reach the sum of $ 1,000 by the end of the year. Yet, the crypto-currencies have the wind in its sails, and we have a feeling that this is only the beginning. Fake, Peter Boockvar ! It believes that the prices of digital currencies is simply related to the monetary policies of central banks, which injected a lot of liquidity. And the effect was immediate, or almost : the crypto-currency has attracted many investors. “You need to ask the following question : if we had never heard of “quantitative easing”, is that crypto-currencies exist ? “
However, soon the crash will begin, and the attitude of investors will change, which seems logical. And so, the price of Bitcoin goes terribly decrease, up to find the initial price, or almost.
The Bitcoin fluctuates around 10 000 dollars, after it had crossed the milestone of 20 000 dollars last December. Therefore, it has lost half of its value in a little less than a month. And if the predictions of Peter Boockvar were righteous ?
Source : CNBC