Now maybe the best time to divest interest in Bitcoin, as a notable Wall Street expert has warned of a possible astronomical crash in the value of the largest player in the cryptocurrency market.
Chief Investment Officer at Bleakley Advisory Group, Peter Boockvar, said on Sunday that as much as 90 per cent of Bitcoin’s value could be wiped off soon.
However, he said on CNBC’s Future Now that the drop in value could either happen suddenly or steadily.
“When something goes parabolic like this has, it typically ends up to where that parabola began,” he said.
Bitcoin, which sold for around $1,300 12 months ago, is now trading above $11,000.
But Boockvar warns investors that the cryptocurrency’s value could return to its previous price.
“I wouldn’t be surprised if over the next year it’s down to $1,000 to $3,000,” he stated, blaming central banks, including the US Federal Reserve, for the cryptocurrency craze due to their easy money policies that were designed to ease the effects of the global financial crisis.
The price of bitcoin has fallen below the $6,000 mark this morning, the first time it has slipped under this value since early November last year.
Investors, many who may have invested in or around the peak of more than $19,000 in mid-December 2017, could now be facing huge losses on their cryptocurrency gamble.
The last time it was valued below $5,000 a coin was October last year, and $4,000, September. Speculators who bought in beyond these prices will be hoping that the fall in its value will finally stop.