The price plunge that Bitcoin has seen this past month is simply an insight of what is to come, according to a well respected Wall Street analyst.
Peter Boockvar, who is the chief investment officer at Bleakley Advisory Group, believes that the number one virtual currency could fall as much as ninety percent, which would take it back to levels that it has not seen since early 2017, when the price first began to climb. He said;
“I wouldn’t be surprised if over the next year it’s down to $1,000 to $3,000.”
At the beginning of this week the price of Bitcoin had fallen once more, falling to $10,686.
There is some good new though. Boockvar has added that he is not expecting the currency to go away altogether, and has added a reason behind his views. He has put the rise in global interest rates as the reason for the fall, similarly to quantitative easing, and monetary policies, that were created to lessen the effects of the global financial crisis, is responsible for the bubble that Bitcoin is experiencing at the moment. He said on the matter;
“You have to wonder if we never heard of quantitative easing, would there have been cryptocurrencies?”
He does have a great worry though, and that is as investor sentiment and risk tolerance shift due to the collapse of the virtual currency fluctuations, there is a chance that the psychological unease will actually spill over onto Wall Street, despite the health of the overall economy.
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