Despite hitting new highs and capturing the interest of behemoth investors, former Merrill Lynch economist, David Rosenberg, believes that Bitcoin is a massive bubble. Speaking on CNBC, the chief economist of Rosenberg Research opined that global markets are currently overextended. He argued that Bitcoin and the stock market are bubbles, with the former being the biggest bubble of them all.
According to Rosenberg, the cryptocurrency space could see another bear market similar to the 2018 crash following Bitcoin’s Bull Run in 2017. He said:
The parabolic move in bitcoin in such a short time period, I would say for any security, is highly abnormal.
But while Rosenberg believes that there is no future in Bitcoin, several other economists and investors are turning to the digital asset to hedge against unstable monetary policies. The overall trajectory and prediction for Bitcoin remain bullish according to a number of prominent Wall Street investors.
In the last 12 months, for example, Grayscale’s asset under management has grown from a mere $2 billion to around $20 billion. Other notable Wall Street funds have also begun channeling capital into Bitcoin.