Bitcoin to $100K before crashing to zero, says Tom Peterffy, who warns the drop could crash the financial markets.
The great Wall Street Divide over whether Bitcoin is a miracle or a bubble continues to grow, with Interactive Brokerage founder Tom Peterffy expressing his concerns about a bubble. The trader/investor has said that the price spike may continue, even up to $100,000 or more, before the price crashes.
The warning from Peterffy included commentary that Bitcoin futures trading may well spell disaster for the entire financial market, with smaller brokerages going in on the cryptocurrency and then going bankrupt. He is restricting his own traders to long positions at $5 per contract (as opposed to the normal $.80) in order to protect the brokerage. He expressed his bewilderment, saying:
“I’m extremely curious, this is an amazing thing. How silly people are, it is just amazing.”
Other traders and economists have issued opposing perspectives. Max Keiser recently expressed his belief that the cryptocurrency would hit $100,000 but would remain stable at those high points due to fundamentals. Others like Tom Lee, founder of Fundstrat, have also expressed a belief that the market would continue to increase as well.
Obviously, with futures trading launching Sunday, December 10, the world is about to get a glimpse of Bitcoin’s future. Whether the legitimization of Bitcoin produces fundamentally strong value perceptions, leads to a massive bubble or quickly crashes may soon be decided once these futures markets open.
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Author: Jon Buck