Bitcoin will be here for a long time, or at least that is what the Chief Investment Officer at Bleakley Advisory Group, Peter Boockvar has suggested. However, this will not come without a very significant price drop when the Bitcoin bubble bursts.
“I wouldn’t be surprised if over the next year it’s down to $1,000 to $3,000,” he added for CNBC.
When asked if the stock market would take a hit in the event of a significant fall of the cryptocurrency’s price Boockvar confirmed that the following drop will mostly be psychological. He believes that people who will be hit the hardest, are the ones who have taken credit card debts to invest on cryptocurrency. The stock market will not be affected a lot because Bitcoin is not something that really is relevant in a 19 trillion-dollar economy according to Boockvar.
Once the cryptocurrency market cracks, he argues that investor attitudes towards risk assets will change. The bitcoin bubble has highly been debated and people have questioned whether Bitcoin is a traditional bubble. Amongst those, Nobel Prize winner of financial bubbles, Robert Shiller used Bitcoin as an example of a bubble in 2017. However, when asked again what he thinks of the cryptocurrency in 2018 he added that he didn’t know what to make of Bitcoin. The cryptocurrency could be around for another 100 years.