Bitcoin To End in Disaster, Says David Stockman

David Stockman ended 2017 leaving Bitcoin traders a warning saying that the cryptocurrency will crash in a spectacular fashion.

The former Director of the Office of Management and Budget during Reagan presidency spoke with CNBC’s Futures Now segment on the last week of December 2017.

In the said interview, the Wall Street bear also mentioned that the Bitcoin frenzy is simply made of:

“… a class of really stupid speculators who have convinced themselves that trees grow to the sky”.

Such forecast was not only on Bitcoin. Stockman also mentioned that stocks will soon experience a similar fate. In September 2017, he also predicted that stocks would spiral down to 40-70% plunge.

True enough, On Friday, Dow Jones Industrial Average closed down to 25,000. Several minutes prior to Friday’s close, selling of stocks have suddenly accelerated.

But, who’s to blame?

According to Stockman, the Federal Reserve and the different central banks are to blame for the upcoming crash. He pointed fingers at them for creating a massive hype around the cryptocurrency and stock markets.

Furthermore, he mentioned the loose monetary policy and the extreme liquidity created to resolve the 2008 recession will have contributed to the looming bubble.

When asked about his input on CBOE’s decision to include Bitcoin futures, he mentioned that the measure does not legitimize cryptocurrency as an emerging asset. The former Republican US Representative also added:

“There is nothing that’s being validated by the opening up of a futures market. It’s just everybody trying to get on the train for the ride. “