Crypto is more than just a hot topic: It’s the center of discussion in the financial world right now. With Bitcoin (CCC:BTC-USD) reaching record highs, Coinbase (NASDAQ:COIN) bringing the digital assets to the traditional market, and now the meteoric rise of Dogecoin (CCC:DOGE-USD), investors have their hands full. But now, bears are wondering how much more pressure the market can take. Will we see the crypto bubble burst in 2021?
InvestorPlace contributor Chris MacDonald reported on Tuesday that many experts foresee a Bitcoin crash. In fact, 74% of professional money managers shared that they see crypto assets as being in a bubble right now. One of those bearish experts on crypto was BTCC founder Bobby Lee. Lee claims that Bitcoin could see a long winter after a massive correction down the line, taking the currency by 80% or more.
What does that mean for the chances of a crypto bubble pop in 2021?
5 Experts Warning of a Crypto Bubble in 2021
Lee’s feelings toward Bitcoin seem to parallel the opinions of market analysts who are bearish on crypto entirely. With Dogecoin flying upward in recent days, more bearish opinions are bubbling up.
Freetrade analyst David Kimberley is speaking out against DOGE today. He says that the rise of Dogecoin is “fool’s theory at play.” Kimberley believes that the rapid buying and price inflation behind DOGE will lead to a massive selloff. Of course, the result will be an army of angry Dogecoin owners who are short-changed.
The theory doesn’t seem detached from reality. With so much DOGE being owned by so few people, the risk of a whale selloff is there. And that speaks to the crypto market as a whole. Cryptocurrency is a market with many whales, raising concerns of a bubble burst.
Matt Partridge of MoneyWeek is another crypto bear. Partridge has been advocating short-selling cryptos to readers for months now, and he has not reversed his stance as the market explodes. With more bearish takes on Dogecoin and Bitcoin coming, we are likely to see advice like Partridge’s heating up.
Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) Vice Chairman Charlie Munger is another expert doubtful of the crypto bubble staying intact. He has referred to the crypto sector as entirely speculative. Joining Munger in these feelings is a crypto hedge fund CEO, Ulrik Lykke, who reminds investors of the dangers of speculation. Lykke is among the growing bearish pack who warn of a correction of proportions much more massive than that of 2017’s crypto crash.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.