Ominous Wall Street predictions hammer bitcoin as price decline continues
Bitcoin's price is in the gutter -- well, if you compare with that $19,940 peak about a month ago. At its current price of $10,437, it's still up roughly 1,100 percent in the past 12 months.
The recent drop could be a result of a recurring trend that's in fashion again: Wall Street experts and analysts having a contest in predicting how low Bitcoin could go.
SEE ALSO: Bitcoin just made the Winklevoss twins billionairesPeter Boockvar, chief investment officer at Bleakley Advisory Group, predicted Bitcoin could drop to as low as $1,000 per coin this year, CNBC reported Sunday. According to Boockvar, bitcoin is a "classic bubble," one that might burst as soon as central banks worldwide start increasing interest rates.
And Robert Shiller, a Yale University professor and a winner of Nobel Prize in economics, once again compared the Bitcoin craze with the infamous tulip mania, one of the first examples of a speculative bubble, Express reported Sunday. Shiller said the price of Bitcoin could "totally collapse," but he also admitted he's unsure about the cryptocurrency, saying that it might just as well "be here in 100 years."
Speaking On Tuesday, UBS Chairman Axel Weber told CNBC that Bitcoin is "not an investment [that UBS] would advise."
The slew of negative predictions aligns with the World Economic Forum, which is taking place from Jan. 23 to Jan. 26 in Davos, Switzerland. Given the number of economics experts there, one can expect a couple more comments on Bitcoin's inevitable demise.
It's hard to gauge as to what extent these comments influence the price of Bitcoin, which is in an odd state right now: With no significant news on the development side and no movement in terms of its wider adoption as a currency, its price depends solely on the sentiment of traders and external factors. In fact, a new Bitcoin bull run would likely inspire experts on the other side of the fence to start predicting extremely high price figures again — and possibly spark another wave of euphoria.
There's a common thread amongst most of the doomsday scenarios: They all focus on Bitcoin. Yes, the original cryptocurrency is still here, like a sleeping giant. It has the first-mover advantage and an air of mystery due to its creator's anonymity, but it sorely needs movement on the development front or some good news from regulators for the price to start moving upwards again.
The price of Ethereum is down from a January high in dollar terms. Since early January, however, it's on the rise if compared to Bitcoin. Credit: Coinmarketcap.com However, the cryptocurrency world has all but moved on. Ethereum, which also fell significantly in the last couple of days, is currently trading at $974, but its price compared to Bitcoin has risen significantly since early December. And other cryptocurrencies, including Ripple, Bitcoin Cash, and Cardano have all risen in value compared to Bitcoin.
Unlike Bitcoin, all these projects benefit from very active development, an ever-increasing number of partnerships, and stacked roadmaps. Right now, it appears they're hurting by sheer association with Bitcoin, but as more old school economics experts realize Bitcoin is not the only cryptocurrency in town, this might change.
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