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Bitcoin price due for a 90% price correction in a mass crypto wipeout, warns the investment bank

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The price of bitcoin and other cryptocurrencies will undergo a 90% correction that will result in a "massive erasure of the market" within the next 12 months, says investment bank GP Bullhound.

While the market correction will decimate many virtual currencies, the few survivors are in an unprecedented rally, predicts GP Bullhound, as reported by CNBC


"Once this" crypto-winter "has passed, the growth momentum for the few survivors will be unprecedented," Sebastian Markowsky wrote in his report, "Token Frenzy: Blockchain Fuel". Markowsky is a director at GP Bullhound and lead author of the report.

Institutional Investors Will Cause Price Increases

In his report, Markowsky also predicts that institutional investors will begin to turn to the cryptocurrency market, while other retail investors will also venture out.

As CCN has already reported, the Rockefeller family is so confident about the future of crypto that it invests long-term in blockchain and cryptocurrency startups.

The migration of institutional and retail investors to the crypto-market will lead to price inflation, which will lead to a possible "panic" and a dramatic fall in prices, predicts GP Bullhound.

Of course, it is only the bearish prediction of a bank for the booming virtual currency market, which is gaining more and more popularity every day.

There are currently over 1000 cryptocurrencies, but many market observers say most will not survive. The market leaders are bitcoin, followed by Ethereum and Ripple.

Even skeptics of cryptocurrency believe that these three digital currencies will survive a bear market, at least in the short term.

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Bar will be lifted on internal control officers

Despite its bearish outlook on the industry, Markowksy predicts that the initial supply of coins (ICO) will continue to flourish. In 2017, ICOs raised more than $ 4 billion. This is a significant amount of capital for a nascent market.

But Markowksy warned that the recent proliferation of ICO scams ensures that investors will not pay more money without concrete evidence that investments can be viable.

"It will not be possible to collect money on the back of a white paper," Markowsky told CNBC. "I think people will need to see more products, the bar will go up very quickly."

Despite GP Bullhound's disgusting predictions, bitcoin evangelists like Twitter billionaire Jack Dorsey and technology billionaire Tim Draper remain unmoved in their confidence that crypto-currencies are here to stay.

To prove his point of view, Draper set a goal of $ 250,000 in bitcoin price for 2022, as reported by CCN. "I'm thinking $ 250,000 of bitcoin by 2022," Draper said. "It's going and it's going to be great!"

Given its past success in predicting bitcoin price movements, Tim Draper's blazing predictions should not be taken lightly.

Image from Shutterstock.

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