Jeremy Grantham, a cofounder at GMO investment firm and a market analyst who predicted the biggest economic collapses, said Bitcoin, like the entire current stock market, is a bubble. In a report on market trends, Grantham gave one of the sections to the rapid jump in bitcoin, saying that the bubble would crack soon, and gave it from six months to two years.
The investor believes that “the lack of a cloudless solid value, uncontrolled markets and the illusion of grandeur make Bitcoin the largest bubble of all that we can find in historical books.” Having arisen by 1,500% after the past year, Bitcoin Grantham argued with the Dutch “tulip fever” of the 17th century and the “legendary bubble of the South Seas”, referring to the English economic pyramid of 1719-1720. According to him, the speculative progress of Bitcoin is combined with the imminent collapse of the stock market itself: “On the one hand, I am well aware that today’s push is the other, and has cost one of the most expensive in US history. On the other hand, as a historian in terms of deep capital-bubbles, I also understand that we are being placed in a phase of deflating, or melting, of a given bull market. ” Grantham’s report cites a number of patterns of cyclical ups and downs of the market over three to three and a half years in various periods in different countries: the S&P 500 stock, which grew incredibly in 1929, the “Japanese material bubble” of 1987-1990, the American “ real estate bubble »2007. Grantem believes that one of the omens is “an increasingly cheerful tone of coverage in the press and on television.” According to him, when the discussion of the market takes up a large share of airtime, “we, of course, may be moving to the final few months.” In a series of warnings by national regulators, notifying of the risks of crypto investments, one of the general concerns and combined with the “Bitcoin bubble”. But at precisely this time, numerous traders happily do not foresee regression and predicting bitcoin progress up to $ 40, 000, $ 50, 000, and even if $ 400, 000. In favor of good times for Bitcoin, there have been rumors and some events of the last month: from the launch of futures on exchanges CBOE and CME pending numerous applications for listing exchange-traded investment funds based on the bitcoin futures values.
Jeffrey Kleintop, chief strategist at Charles Schwab, an investment company, recently refuted the comparison of bitcoin with the dot-com bubble or real estate. He believes that Bitcoin is settled separately from the rest of the market. This week it became clear that the Founders Fund, a venture capital firm of Peter Thiel, owns hundreds of millions of dollars in bitcoins (from the initial mark of $ 15-20 million). Til believes that bitcoin has “huge potential”, especially if the cryptocurrency continues to develop as a “cyber equivalent of gold.”