Bitcoin, the world’s most popular cryptocurrency, fell more than 10 percent on December 20 to a one-week low of $15,800.
But Mr Horwitz said the cryptocurrency will undergo further “dramatic” falls and rises as it establishes itself in the wider financial market.
He said: “I think when you look at bitcoin it’s obvious it’s new, it’s under a lot of ‘fear of missing out’ trade – there’s a lot of people trying to figure out how to trade it right now.
“I would think that the bitcoin price is a bit of a bubble and I think you will see some more dramatic falls. But anytime we see dramatic falls you also see dramatic rises as the buyers try to get back in.”
The Bubba Trading chief strategist said bitcoin will only grow in popularity and use as it becomes a “great alternative currency” despite warnings of possible value crashes.
Mr Horwitz told Bloomberg: “Of course, the exchanges are now offering it and the margins really high. But I think the bitcoin itself is probably going to be sold off pretty good.
“I do believe the cryptocurrency space is here to stay and I think it’s going to be a great alternative currency that’s going to be used.”
Bitcoin price continues to fluctuate in its very volatile market, but considering the “huge year” it has had the cryptocurrency is here to stay, according to Tech Investor Roger McNamee.
He said: “When you look at bitcoin, the thing that I would observe here is that it’s still a very small market in the context of a larger financial world.
“The thing that people forget is that if a mania goes on long enough it becomes self-fulfilling so that even after the crash follows, there is a real industry.
“We saw that with the internet bubble, we’ve seen it over and over through American history.”
According to Coindesk, bitcoin is currently valued at $13,294, at 2.38pm, on December 31.
This article was curated from Google News. You can read the original article here.