Investment Strategist warns Crypto Market is in a Massive Bubble set to Burst

Jeremy Grantham, a famous investment strategist, predicted that all markets, including the crypto market, are in a massive bubble that is about to burst. What reported Per Bloomberg, the veteran investor, the rise of the cryptocurrency market in recent years points to the end of a market bubble that is about to burst. Grantham adds that not even intervention by the Federal Reserve Bank can remedy the situation.

Cryptocurrencies should never be trusted according to veteran investor Jeremy Grantham

According to Jeremy Grantham, like many others skeptics, the entire market, from bonds, real estate, stocks, and commodities to cryptocurrencies, is in a bubble that is about to burst soon. Grantham, co-founder and chief investment strategist at Grantham, Mayo & van Otterloo (GMO), a Boston-based asset management firm, made this claim in a recently published report.

According to the famous British broker, crypto does not give him any kind of trust. The entire cryptocurrency market and all cryptocurrencies are leaving you feeling like the proverbial little boy who saw the emperor walk around naked while everyone admired his non-existent new robe. He advises that, if possible, investors should avoid the cryptocurrency market altogether.

Cryptocurrencies make me feel more and more like the child watching the naked emperor go by in procession. So many important people and institutions are admiring his amazing coat, which is technically so complicated and superior that normal people just can't fathom it and have to trust it., he said. I would not do it. In such situations, I have learned to prefer avoidance to confidence.

He predicts that US markets are ripe for the biggest crash ever recorded. Reasons he points to for his gloomy market outlook include what he called “crazy investor behavior” leading to frenzied buying of memestocks, memecoins and NFTs leading to massive spikes in their price. He also points out that the February 2021 drop in the value of speculative stocks is also evidence of this "super bubble."

In his opinion, nothing will prevent the market from collapsing, not even the intervention of the Federal Reserve Bank. Notably, this is not the first time he has predicted such an event. His current prediction has been met with some skepticism from other detectives who have questioned his argument.

Crypto Proponents Don't Think The Market Will Crash Much Further

While Grantham's doomsday market call comes at a time when the crypto market has been in a sell-off, many crypto market participants will question his analysis of a total market crash. Bitcoin proponents remain bullish for the benchmark cryptocurrency due to various on-chain metrics indicating the market could pick up very soon.

In fact, market participants are highly optimistic that the crypto industry will see much more adoption, with Bitcoin reaching a price of $100,000 in 2022. Meanwhile, Bitcoin is trading at around $34,600, down 9.75% on the last 24 hours. But according to technical analyst Katie Stockton of Fairlead Strategies, the price falling below $40,000 is not yet doom.