Is this just the beginning of the bitcoin crash?
If you’ve invested any money in cryptocurrency and bitcoin, then you’re well aware that the price of bitcoin is falling fast. Maybe your personal finance situation has felt a blow from the bitcoin crash.
According to one highly-esteemed Wall Street veteran, this is only the beginning. Chief investment officer at Bleakley Advisory Group Peter Boockvar says that bitcoin could drop 90%. Has the cryptocurrency bubble finally popped?
Though he doesn’t think cryptocurrency will completely go away, he told CNBC last week that bitcoin is in danger of dropping 90%. “I wouldn’t be surprised if over the next year it’s down to $1,000 to $3,000,” he said.
The last time bitcoin was around that level was in February 2017. As of this writing, 1 bitcoin is valued at $11,119.99.
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Boockvar says that from an economic standpoint, the downfall of cryptocurrency won’t make much of a dent in the US’s $19-trillion economy. But some countries are more likely to feel the effects than others.
For example, countries like South Korea, Japan, and even the US, where a significant number of people have gotten into credit card debt to buy cryptocurrency.
The bitcoin crash’s psychological toll
However, the fall of cryptocurrency could take a psychological toll on investors. And the fall of bitcoin is probably an indication that it already has, according to Boockvar.
“So if cryptocurrencies roll over and collapse, then maybe that’s a sign that the risk-taking attitude of investors is changing,” he says.
What caused this fall? Boockvar points to government crackdowns and the rise in global interest rates. “I look at it more of a symbol of speculative behaviour,” he says. “But from a pure economic standpoint, I don’t see it having a major impact if the price of bitcoin continues to decline.”
What do you think of the bitcoin crash? Let us know in the comments!
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