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Richard Bernstein, a renowned institutional investor, believes cryptocurrencies are the largest financial bubble in history. He shared his sentiments during an interview on December 10, noting that the global market functions like a seesaw. Explaining this theory, Bernstein said bubble assets like cryptos exist on one side of the seesaw, while the other side comprises everything else in the world.
In the Interview, Bernstein advised investors to pump their money into traditional assets in the coming year. According to him, such assets hold the real opportunity to thrive because the sector has capital scarcity. He added that capital scarcity is good for investors because the chances of getting more returns are high.
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Bernstein reiterated that cryptos are a monster bubble. He pointed out that many people who have invested in disruptive assets are talking about stocks plunging significantly after shedding around 35% of their value. Bernstein further noted that people said the same thing about the tech bubble when stocks fell by a range of between 30 and 40%.
However, historical data shows that this plummet was only the halfway point, seeing as the stocks continued bleeding, losing between 75 to 90% of their value. To this end, Bernstein believes investors should wait and analyse the fundamentals and valuations before deciding that the current rout in the crypto market is over.
Crypto markets continue performing deplorably
While Bernstein suggests that the bearish sentiment in the crypto market might persist, other experts have a more bullish outlook. An example is Ballet wallet founder Bobby Lee. According to him, Bitcoin (BTC/USD), the largest crypto by capitalization, is yet to crescendo. He believes the coin might peak before the end of the year or early 2022.
Lee predicts that BTC might surge to $150,000.00 (£113,349.75) or $200,000.00 (£151,133.00). The founder of Inside Edge Capital Management, Todd Gordon, and JPMorgan Chase also believe BTC will soar past $100,000.00 (£75,508.50) in 2022. However, it is worth noting that these predictions came as BTC was trading above $60,000.00 (£45,339.90)
At the time of writing, BTC is changing hands at $48,729.86 (£36,795.19) after losing 1.19% over the past 24 hours. This price represents a 29.10% drop from its all-time high (ATH) of $68,789.63 (£51,942.02). The altcoin market is also bleeding, with leading coins like Ethereum (ETH/USD), Binance Coin (BNB/USD), Solana (SOL/USD), and Cardano (ADA/USD) down 1.67%, 2.59%, 3.70%, and 2.95%, respectively.