Cryptocurrency Explosion to Affect Stock Market

"Explosion on the cryptocurrency market can hit the stock market and plunge it into chaos," says Christopher Harvey, Head of the strategic department at Wells Fargo Securities. He admitted that he had been closely following the unprecedented activity on the cryptocurrency market, which could turn out to be the largest bubble in history.

"There is a large amount of" froth" on the cryptomarket. We believe that eventually this froth can overflow," warns Harvey.

It should be recalled that last week the cryptocurrency market was subject to significant fluctuations in prices, which led to Bitcoin's losing a third of its value in a day, though later regaining its positions.

" We are afraid that overflowing of this froth can affect the stock market. This is evident even now, but not on such a scale. This should be monitored next year," he said.

However, according to Harvey, the stock market has other problems that are not related to the possible explosion of the cryptocurrency.

Harvey's fears about Bitcoin are shared by other analysts. According to James Faucette at Morgan Stanley, the real value of the cryptocurrency can be zero, and Ron William, chief market strategist at RW Market Advisory, said that Bitcoin might infect other markets while falling.