Bitcoin Could Lose 90 Percent Of Its Value This Year – Wall Street Veteran Peter Boockvarbr>
Bleakley Advisory Group CIO Peter Boockvar has predicted that bitcoin will “implode” and lose up to 90 percent of its value before the end of the year.
Last week, bitcoin’s price fell nearly as low as $9,057 after hitting a record $20,000 in mid-December. It is trading today at $11,600 per coin.
In an interview with CNBC, Boockvar said he believes the bubble will burst soon and leave many bitcoin investors out in the cold.
“When something goes parabolic like this has, it typically ends up to where that parabola began,” he said “I wouldn’t be surprised if over the next year it’s down to $1,000 to $3,000.”
Boockvar argues that the collapse will be in tandem with rising interest rates around the globe and blames central banks for the cryptocurrency craze, due to their easy money policies. Once the cryptocurrency market cracks, he contends, investor attitudes toward risk assets will change with the stock market seeing collateral damage as a result of a change in investors’ psychology.
“From an economic standpoint it’s not really something that’s relevant in a $19 trillion economy,” said Boockvar. “Maybe in South Korea and Japan – and even in the US – where people are taking on credit card debt to buy coins, yeah, they are going to be necessarily impacted. But I think we need to look at it more broadly, in a sense that the central bank bubble manifested itself in many different places, and just recently cryptocurrencies. If cryptocurrencies roll over and collapse, then maybe that’s a sign the risk-taking attitude of investors is changing.”
Boockvar previously was the Chief Market Analyst for The Lindsey Group, a macro economic and market research firm started by Larry Lindsey. Prior to this, Boockvar spent a brief time at Omega Advisors, a New York-based hedge fund, as a macro analyst and portfolio manager. He was also an employee and partner at Miller Tabak + Co for 18 years where he was recently the equity strategist and a portfolio manager with Miller Tabak Advisors.