A Wall Street veteran recently predicted that bitcoin will loss 90% of its current value over the next year.
During an interview with CNBC’s Futures Now, Peter Bookvar, chief investment officer at Bleakley Advisory Group, said he will not be surprised if bitcoin drops to as low as $1,000.
According to Bookvar, “When something goes parabolic like this has, it typically ends up to where that parabola began. I wouldn’t be surprised if over the next year it’s down to $1,000 to $3,000.”
Bitcoin starts week with a sharp decline
Bitcoin started trading with a sharp decline on Monday. The largest cryptocurrency dropped more than 10% to as low as $10,266.90 based on data from CoinDesk.
Last week, bitcoin suffered a massive sell-off. Its price plunged below $10,000 due to the increasing regulatory scrutiny around the world. The rout also impacted other cyrptocurrencies including ethereum and ripple.
Earlier today, ethereum also fell to as low as $$957.48 while ripple tanked to as low as $1.17, according to data from Coindesk.
The three digital cryptocurrencies recovered some of their losses in the afternoon trading. Bitcoin was trading $10,643.97, still down more than 7% around $12:43 in the afternoon, Eastern Time.
On the other hand, ethereum and ripple were trading $987.32 and $1.24, respectively. Both digital currencies were still down more than 5% and 10%, respectively.
The reason behind the cryptocurrency sell-off today is unknown. However, there is a possibility that a negative report regarding initial coin offerings (ICOs) likely spooked investors.
Hackers stole 10% of funds raised in ICOs
Earlier on Monday, Reuters reported that hackers stole more than 10% of fund raised through initial coin offering (ICOs) based the research released by Ernst & Young.
The professional found that almost $400 million of the total $3.7 billion fund raised through ICOs had been stolen. Hackers were stealing $1.5 million in ICO proceeds every month, according to the analysis of the professional services firm.
Additionally, Ernst & Young discovered that the ICO volumes have been slowing since late 2017. The professional services firm noted that in June ICOs reached 90% of their target but in November less than 25% of ICOs achieved their goal.
Paul Brody, the global innovation leader for blockchain technology at Ernst & Young, said, “The volume just exploded, people raised their fundraising goals and the quality just dropped.”
“We were shocked by the quality of some of the white papers, we see clear coding errors and we see conflicts of interest between the companies issuing tokens and the community of token holders,” he added.