Crypto stocks slam as Dr. Doom weighs in

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Nouriel Roubini has recently taken a stance on cryptocurrency, and crypto stocks, from Coinbase (NASDAQ:COIN) to Riot Blockchain (NASDAQ:RIOT) to Microstrategy (NASDAQ:MSTR) have taken a hit. There’s a reason they call him “Dr. Doom,” and the crypto market just found out why. So how did Roubini trigger a massive drop in crypto stocks? Immediate were Roubini’s remarks at the World Economic Forum in Davos, Switzerland, earlier today.

During these remarks, Roubini said that literally 90% of crypto is a scam. He amplified this position by noting that most of the crypto market is also criminal activity and a total real-bubble Ponzi scheme that is going bust. Other news rounded out Roubini’s dire stance, which included crypto lender Genesis preparing to file for bankruptcy. Additionally, the United States Department of Justice is seeking to launch a… major international cryptocurrency enforcement action.

He managed to get worse from there. Roubini also noted that there was a huge disconnect between the markets and the Federal Reserve and that a stock market crash would occur soon enough or in about six months. Roubini linked the massive inflationary spikes we’ve seen in recent months to a potential crash, noting that the Fed would either…much more, causing an economic and financial crash, or…crash. Wimp(ing) here would feature a market rally but crash down the line.

All three stocks fell on Wednesday afternoon. The analyst consensus declares Riot Blockchain a Strong Buy, Microstrategy a Moderate Buy and Coinbase a Hold. Coinbase offers a measly 8.1% upside potential with its average price target of $56.19. The micro strategy, on the other hand, offers upside potential of 115.21% on an average price target of $477.33.

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