Bitcoin’s price slump could signal another stock market shock is coming, according to Bleakley Financial Group’s Peter Boockvar.
“If bitcoin resumes its decline here, I think that equity investors should pay attention. It’s a sign that maybe risk aversion is creeping into the markets again,” the firm’s chief investment officer said Tuesday on CNBC’s “Futures Now.”
Not only is the bitcoin crash still fresh, Boockvar predicts central banks abandoning easy money policies will further eat away at risk appetites.
“This is the everything bubble generated by seven years of zero interest rates and negative interest rates overseas and massive amounts of money printing. It shows up in the asset price inflation in many different places,” he said.
Bitcoin prices skyrocketed between Thanksgiving and mid-December — surging to a record $19,843. By January, prices were crashing. A few weeks later on Feb. 2, the stock market began its historic plunge.
“Since the price of bitcoin is still well above where this parabola has started, I still think there is a lot of downside.”