Wall Street Legend Fears Crypto And Tech Are Forming A ‘Monster’ Bubble

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Last Updated on 14 December 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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From time to time, it’s worth asking yourself how life would be on the other side. If we were to only state that Bitcoin, Ether and other altcoins can only go up, we’re seriously dreaming.

During the 2017-2018 bullrun of Bitcoin, there were no less than 7 serious pullbacks, and now with rising inflation, Omicron scares and the Federal Reserve threatening to turn off the automatic fiat printer, a stock market crash could be imminent, according to some analysts.

With the new German foreign minister Annalena Baerbock scaring energy markets as well, we could have a full blown crisis on our hands.

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Bubble assets

Institutional Investor Rich Bernstein, whose career on Wall Street spans several decades, is warning that tech and crypto are now faced with a possible collapse as investors go risk-off. Speaking to CNBC over the weekend, he stated:

On one side, we have all that I would call the bubble assets: tech, innovation disruption, cryptocurrencies.

On the other side of this see-saw, you have literally everything else in the world. I think if you’re looking at 2022 into 2023, you want to be in the everything else in the world side of that see-saw.

Bernstein claims cryptocurrencies as turning into a major problem due to their popularity with young people.

Cryptos are the biggest financial bubble ever in history. This is just a monster one.

90% fall

According to the investor, Bitcoin faces a 90% fall while tech stocks could see devalutions last witnessed in the dotcom bust of 2000.

I think one wants to wait to look at the true fundamentals, and look at the valuations before deciding that this is all over.

Bernstein added.

His warning comes just as ARK’s Cathie Wood is also getting slammed for her tech and crypto picks this year. Wood was the top stockpicker of 2020, but this year has been much harder. Her fund is down some 21% year to date.

denisismagilov / Depositphotos.com