David Rosenberg, a former economist at Merrill Lynch, says Bitcoin’s being in a massive bubble as on date causes an extended bear market, similar to 2018.
In a recent interview with CNBC, David Rosenberg, a former economist at Merrill Lynch and the chief economist and founder of Rosenberg Research, said that Bitcoin’s massive bubble could result in a situation similar to Bitcoin’s bull run of 2017. He further stated that this has led him to avoid bitcoin, especially after its current run setting new records exceeding $30,000.
According to this expert, this increase is “highly abnormal” and called this BTC’s “biggest market bubble.” He reiterated his statement made in December that there are too many people trading in BTC. Rosenberg has questioned the number of existing Bitcoins, which is currently at 21 million, stating that since the demand is more, there should now be a change in protocols with the production of more tokens.
This North American economist predicted that there is a good chance of “central bank digital currencies” taking over the cryptocurrency market’s share.
BTC performance was somewhat similar in its last bull run of 2017. When the bubble exploded then, there was a one year run of bear market, lasting up to 2018.
The economist says that it is not just BTC in a bubble – the stock markets are too but they may not explode soon because of the economic situation worldwide. He warns prospective investors that despite the fact that the stock bubble may not burst soon, it is still in a bubble and they would only allocate funds in it.
His plan is to invest in non-bubbly areas rather than buy BTC or stocks, so that there is “catch-up potential”. Energy and utilities are some alternate sectors as is god, which has “1/5th of the volatility that bitcoin does”.