The price of bitcoin is currently at around $15,000, but it seems that some analysts expect it to start losing value. While a lot of investors have put a lot of faith in bitcoin and the cryptocurrency market, believing that the price of the digital currency will continue to go up, Dennis Gartman believes it will evolve in the opposite direction.
Gartman, who is known for his The Gartman Letter, claimed that bitcoin is actually one of "the silliest" ideas he got to know of in a long time. The statement was made by Gartman during a discussion on CNBC. And that is not all. Gartman considers that the bitcoin market will suffer a huge fall in the near future. He actually said that he expects the value of the digital currency to drop to $5,000.
Of course, Gartman also gave some reasoning to his statements. He claimed that the digital currency functions as a bubble and it has no intrinsic value. Of course, this means that it cannot last on the long term. However, according to him, the fact that bitcoin will blow up at one point does not mean that the technology on which it is based is not valuable. In fact, Gartman said that this technology is "brilliant."
Gartman said that he definitely expects that the price of bitcoin will go down to $5,000. And when this will happen, he said, the whole market will go down. Gartman explained that such a low price will make investors decide to withdraw from this market and they will definitely choose to invest in gold.
Gartman also pointed out to a fact that has previously been debated by many people: the volatility of this cryptocurrency. He said that because of its high volatility, bitcoin cannot be used as a currency. Gartman said that no one can use bitcoin to purchase items when the value of the cryptocurrency sometimes changes up to 40% in just one week.
