The prominent American economist Dennis Gartman has predicted bitcoin's collapse, calling it "the silliest idea", and forecasts investors to flee back to gold.

According to Dennis Gartman, world-known American analyst of commodity markets, bitcoin is one of the one of the silliest ideas I've heard in a long time." Gartman believes that bitcoin is a bubble, and it has surpassed even the tulip bubble in Holland in the 17th century.

"To be separated from the brilliance of the block chain, [makes even] tulips in [17th] century Holland look almost like a quiet, well-demeanored market," Gartman said, who had previously urged investors to stay away from bitcoin.

Gartman suggested that the price of bitcoin would fall below $5,000.

"Whether it does it next week, next year, six months from now, it'll happen. And then I think we'll find at the margin money that had moved into bitcoin and away from gold will move away from bitcoin and into gold."

Earlier, Birinyi Associates published a study on 10 largest financial bubbles in history. According to the research, bitcoin is the third largest financial bubble in history, after the Mississippi company of the 18th century and price surge of Qualcomm shares in December 1999.